Moving Expenses: IRS Tax Deductions

In certain situations, you can deduct a portion of your moving expenses from the total you pay the IRS in taxes for the year. To be eligible to deduct moving expenses, however, your move must meet specific requirements.

Eligibility Requirements for Moving Expenses

You cannot deduct your relocation expenses from every move on your annual taxes. Your move must be directly related to your job, and your new place of employment must be located a minimum of 50 miles further from your old home than your previous place of employment. In addition, your new employer must provide at least 39 weeks of full-time employment for any moving expenses you incur to qualify as a tax deduction.

Moving Expenses that Are Not Deductible

Not all of your moving expenses qualify as tax deductible--even if your move itself qualifies. You cannot, for example, deduct the purchase price of your new home, food you purchase during the move, storage expenses, fees for breaking a lease or any expenses you incur when registering your vehicle in a new country or state.

Deduction Restrictions

If your employer pays a portion of your moving expenses, you cannot claim the portion your employer paid as a tax deduction. In addition, if you are self-employed, you cannot claim your move as both a business deduction and a personal tax deduction. Even if it qualifies under both categories, you may claim it only as a single deduction.