Tax Tips – Is It Tax Deductible? – Moving

Tax TipsLearn tax tips so you will be informed and can save money on taxes!

Question – Are moving costs Tax Deductible?

Example – You accept a new job that requires you to move. You can write off your moving costs even if you don’t itemize.

Answer – True or False?


The answer is TRUE.

Job-related moving expenses are an “above-the-line” deduction; you can deduct them even if you take the standard deduction on your tax return. You do have to use the long form 1040 and report your expenses on a Form 3903, but you don’t have to itemize deductions. (To qualify for this deduction, you new workplace has to be at least 50 miles farther from your old home than your old job was.)Mileage Tracking

If you do itemize, you may also be able to deduct your job-hunting costs, such as career counseling, resume printing and travel expenses to job interviews. Such costs are considered miscellaneous expenses and are deductible to the extent all miscellaneous expenses exceed 2% of your adjusted gross income.

While moving expenses are deductible for getting to your first or any subsequent job, job-hunting costs don’t count when getting your first job. After that, such expenses are deductible as long as you’re looking for a job in the same line of work (even if you don’t succeed in getting a new job).

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