Moving this summer? Here are some tips you may not be aware of.

Moving is a lot of things such as stressful and even expensive.  Summer is a popular time to move if you have children because school is out.  I have outlined 10 tips that can help you determine if those moving expenses are deductable on your taxes.  Typically the move must be related to a new job or a new job location.   Moving expenses can be deducted in the year they are paid OR in the year in which reimbursement is received (as long as the expense is paid before the extended due date of the return).

1. Your move must be closely related to the start of work.  In general if the expenses are incurred within one year of the start at the new job/location they may be deducted.
2. Distance test  Your new job must be at least 50 miles farther from your previous home than your previous job location.  This can become tricky depending on where your previous home and job location are in relation to the new job.  It’s not just a matter of being 50 miles apart, in other words if you did not move your commute would have to be 50 miles more than the commute to your old job location.
3. Time  You must work full time for a minimum of 39 weeks in the first 12 months or at least 78 weeks in the first 24 months for self employed individuals.  If you must file your return before the time period has been met you can still deduct the expenses if you expect to meet the minimum requirement.
4. Personal and household goods  You can deduct the expense of packing and transportation of your household and personal goods.  If the goods are stored in transit you may be able to deduct those expenses as well.
5. Travel  You can deduct lodging costs for you and other members of your household.  Transportation costs including parking fees, tolls, vehicle mileage and airfare.  Transportation costs are limited to one trip per household member.
6. Utilities  You can deduct the cost of connecting or disconnecting utilities.
7. Non deductable expenses  You cannot deduct any portion of the purchase price of you new home or the costs of buying or selling a home.  You also cannot use the cost of breaking a lease, security deposits or storage (except in transit).  The costs of car tags and drivers licenses are not deductable.   
8. Reimbursement  Employer provided reimbursed expenses may have to be included on your return.
9. Form  To determine the deductable portion of your moving expenses use Form 3903.  You may only deduct reasonable expenses based on the circumstances.
10. Update your address   You already know that you should notify the US Postal Service of your new address, but it is also advised that you file Form 8822 to notify the IRS.

 Have questions?  You can obtain a copy of Publication 521 from the IRS website available in PDF format.  You can also contact your tax professional or contact me and I will be happy to offer any assistance.