Taxpayers may be able to deduct certain expenses
of moving to a new home because they started or changed job locations. Use Form 3903, Moving Expenses, to claim the
moving expense deduction when filing a federal tax return. Home means the taxpayer’s main home. It does not include a seasonal home or other
homes owned or kept up by the taxpayer or family members. Eligible taxpayers can deduct the reasonable
expenses of moving household goods and personal effects and of traveling from the former home
to the new home. Reasonable expenses may include the cost of
lodging while traveling to the new home. The unreimbursed cost of packing, shipping,
storing and insuring household goods in transit may also be deductible. Who Can Deduct Moving Expenses? The move must closely relate to the start
of work. Generally, taxpayers can consider moving expenses
within one year of the date they start work at a new job location. The distance test. A new main job location must be at least 50
miles farther from the employee’s former home than the previous job location. For example, if the old job was three miles
from the old home, the new job must be at least 53 miles from the old home. A first job must be at least 50 miles from
the employee’s former home. The time test. After the move, the employee must work full-time
at the new job for at least 39 weeks in the first year. Those self-employed must work full-time at
least 78 weeks during the first two years at the new job site. Different rules may apply for members of the
Armed Forces or a retiree or survivor moving to the United States. Here are a few more moving expense tips from
the IRS: Reimbursed expenses. If an employer reimburses the employee for
the cost of a move, that payment may need to be included as income. The employee would report any taxable amount
on their tax return in the year of the payment. Nondeductible expenses. Any part of the purchase price of a new home,
the cost of selling a home, the cost of entering into or breaking a lease, meals while in transit,
car tags and driver’s license costs are some of the items not deductible. Recordkeeping. It is important that taxpayers maintain an
accurate record of expenses paid to move. Save items such as receipts, bills, canceled
checks, credit card statements, and mileage logs. Also, taxpayers should save statements of
reimbursement from their employer. Address Change. After any move, update the address with the
IRS and the U.S. Post Office. To notify the IRS file Form 8822, Change of
Address. Avoid scams. The IRS does not initiate contact using social
media or text message. The first contact normally comes in the mail. Those wondering if they owe money to the IRS
can view their tax account information on IRS.gov to find out.