Taxes are due Monday Apr. 18, 2011. These tips for how to deduct moving expenses on your 2010 taxes are summarized from the American Moving & Storage Association.
You can deduct reasonable moving expenses on your 2010 taxes if:
- you moved because of a change in your job or business location
- because you started a new job or business
- your new job is at least 50 miles farther from your old home than your old job was from your old home (If you had no previous job, your new job must be at least 50 miles from your old home)
- you are working at least 39 weeks during the first 12 months of your move as an employee
- or, you are self-employed, on top of the 39 weeks you must work at least 78 weeks during the first 24 months after the move, with some exceptions
- the time requirements are thrown out if you are a member of the armed forces and your move was due to a permanent change of station
So what’s a reasonable expense? The IRS says this includes the cost of packing and transporting your stuff, storage and insurance on your stuff, and connecting and disconnecting utilities. You can also deduct travel expenses, like hotel and transportation to your new place. Meals are not deductible nor are pre-move house-hunting expenses. For driving, you can deduct $.165 cents per mile, plus parking fees and tolls.
Use Form 3903 for moving expenses and then deduct as an adjustment to income on Form 1040. If moving expenses were reimbursed by your new company, you cannot deduct them. (That’s double dipping, essentially). More info on deducting moving expenses at IRS Publication 521.