Deductible Moving Expenses
Yes, Uncle Sam stands ready to help soften the expense of your
job-related move.
No, he isn't quite as generous about it as he used to be.You may
be eligible to deduct some moving expenses if:
* Your new job or job transfer is at least 50 miles farther
from your home than the old one was. * If you had no previous
job, the new one is at least 50 miles from your old home. * You
are in the armed forces and had a permanent change of station.
You are eligible if you are working full-time (defined as at
least 39 weeks in the next year.) Expenses are included if they
are incurred within one year from the day you reported to work
at the new job. Time extensions are sometimes granted, if, for
example, you remained in your old home until your daughter
graduated from high school.
If you are self-employed, you also need at least 39 weeks in the
12 months after the move.
Generous provisions, however, allow coverage without the
required length of time at the new job for members of the armed
forces, those transferred by an employer, those who lost a job
through no fault of their own, and persons returning to the
United States from abroad when they retire (or their survivors).
The expenses are deducted directly from your adjusted gross
income, rather than being included in itemized deductions. This
may leave you free to take a standard deduction if that's
usually to your advantage. It also bypasses the regulations that
sometimes make itemized deductions less valuable.
If you are qualified, you may deduct the expenses of:
* Packing and transporting household goods, * Mileage for use
of your own car (or gas and oil expenses) * Tolls and parking
fees on the trip * Up to 30 days' storage of household goods *
Disconnecting and connecting utilities. * Transportation and
lodging for yourself and members of your household while
traveling to the new home.
No longer deductible: $3,000 more for up to 30 days' temporary
living expenses, house hunting trips, or costs of selling an old
home and buying a new one.