Are Moving Expenses Tax Deductible?

Moving expenses can be deducted from your annual tax bill, but only under certain circumstances. A simple cross-town move will not satisfy the IRS criteria for this deduction. The core issue concerns your job or place of business and its distance relative to your home. Additionally, your move must also coincide with the start of a new job.

Read more to discover the qualifications to deducting moving expenses from your tax bill.

Moving Distance

The distance between your home and place of work can be a major issue. If your new job is more than 50 miles farther than your old job was from your old home, then your move can be deducted, provided that you are moving within 50 miles of the new job.

The exception here is for members of the military who have been transferred to a new permanent station. Military personnel do not have to satisfy either the distance or time criteria in order to deduct their moving expenses.


The timing of your move is also important. You must make your move within a year of being hired to a new job. You must also work full-time for a minimum of 39 weeks during the first 12 months of employment. Additionally, you must also work full-time for 78 weeks in the first 24 months after your arrival to the new home for your moving expenses to be tax deductible.

Reporting Moving Expenses

To report your moving expenses, use the IRS form 3903, titled Moving Expenses. The form only allows you to report transportation, storage, and travel expenses. If you need to stay overnight in a hotel along the move, you can also deduct that.

The IRS is clear that you may not deduct any food expenses incurred on your move. On the other hand, you may deduct for fuel expenses, but you will need to include any funds you received from your employer to offset the move. If your employer gave you more money than was used in the move, then the IRS asks that you claim that as income on form 1040.


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