Life Hacks

Are Moving Expenses Tax Deductible

When preparing for a move, it is important to look at the possible ways to cut on cost. If you moved in 2017, you were one of the lucky people to enjoy a tax-deductible moving expense. However, in 2018, the tax break was omitted mainly due to the job act and tax cuts. This provision is in effect until 2025.

If you moved in 2018, or are planning to move in 2019, this article offers information on deductible moving expenses. Learn how this applies to you when filing your returns in the coming months.

It Is Impossible to Deduct Moving Expenses In 2019

This is because of the tax cuts and the job act. Even though this makes it impossible for anyone who moved between 2018 and 2025 to file for tax deductions, it also means that the tax deduction still applies to anyone who moved before 2018. Military members are also able to deduct moving expenses whenever they move to a permanent station.

Criteria to Meet to Qualify For A Deduction

Even though you may have moved in 2017, it does not automatically guarantee that you qualify for moving tax deduction. There are certain criteria you must meet to qualify. They include:

  • Moving time frame – you need to start on the new job within a year of moving to the new area
  • New job distance – your old home must be at least 50 miles away from your new job.
  • Length of work- you need to work at your new job for at least 39 weeks within your first year of moving.

Exemptions to Consider

If you do not meet any of the above criteria, you can check to find out whether you qualify for tax exemption. Some exemptions to look at include:

If you work for the military and move to a permanent station, you do not need to meet the minimum work weeks or distance test. Also, US citizens moving back from working abroad do not need to have new jobs. If you are laid off for any other reason apart from misconduct, you are exempt from the job length requirement.

Moving Expenses Qualifying for The Deduction

The tax deduction on moving expenses only covers some moving expenses and not all. The cost of any meals you take during your move is not covered. The expenses that qualify for tax deduction include:

  • Shipping costs incurred when moving
  • The cost of packing and moving charged by a moving company such as
  • Airfare, car rental or other travels costs
  • Rental truck costs
  • Storage unit cost
  • Lodging and hotel costs while moving
  • Cost of moving boxes and supplies
  • Tolls and parking fees.

You Can’t Claim Expenses Paid for By Your Employer

While it may seem like a good idea, it is not possible to claim tax returns on moving expenses catered for by your employer. Ensure you keep track of your spending. This way, you can claim a tax return on any expenses that you had to pay for out of your pocket. You will be required to reconcile the difference in terms of what you paid against what your employer offered.

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