For tax years prior to 2018, Federal tax laws allow you to deduct your moving expenses if your relocation relates to starting a new job or a transfer to a new location for your present employer. To qualify for the deduction, your new work location must be a sufficient distance from your old home and you must begin working shortly after you arrive. Beginning in 2018, the moving expense deduction is only available to certain military personnel.
According to the IRS, you can deduct moving expenses on your federal tax return if you’re in the military and are:
- Active-duty military member, and you permanently move to a new base pursuant to a military order
- The dependent or spouse of a military member who moves to a new base
- The spouse or dependent of a military member that died, was imprisoned or deserted
However, not all expenses are fair game to claim on your taxes. They must be considered reasonable for the circumstances, and include things like temporary storage, packing and crating of personal items, and traveling expenses (including lodging) to your new home. Claim expenses may be eligible in certain circumstances, but Bailey's Moving & Storage is not a qualified tax consultant, and it is important to seek advice from qualified sources prior to submitting any expenses as tax deductions.
Keep in mind that these rules are subject to change over time. For the most recent details on claiming your moving expenses on your taxes, feel free to check out the IRS website’s free tool.
