Answered by Michael E Fromm
September 27, 2018
If you moved in the last year for a work-related reason, such as a new job, and expecting deductions from moving expenses, you should be aware of a recent tax reform law.
Moving expense deductions are suspended
This change went into effect on January 1, 2018 and will remain through December 31, 2025. This means that,
for the 2018 tax year and onward, you will not be able to deduct any moving expenses. The only exception to the Tax Cut and Job Act are for members of the military on active duty who move pursuant to a military order.
If you moved in 2017, you had the opportunity to deduct moving expenses when filing your taxes in 2018. Unless otherwise acted upon by Congress, the TCJA will end for the 2026 tax year.
The rules before the latest tax reform
Before 2018, most moving expenses were tax deductible, if it was a work or job related move. Qualifying for these deductions relied on being able to pass two tests, one for distance and one for time.
- The distance test required your new place of employment to be at least 50 miles farther from your home than your prior job
- The time test required full-time work for at least 39 weeks within the 12 months after you moved
Qualifying expenses included lodging, gas, and mileage for yourself and household members while traveling to your new home. Also deductible was the cost of packing, crating, and shipping your belongings. This also included the cost of storing and insuring these items while in transit.
However, the purchase price of your new home, the cost of selling your old home, and the cost of entering or breaking a lease were not tax deductible.
For more information
These guides explain the new tax reform further, as well as other deductions you can still take advantage of: