Moving expenses are adjustments made to income. These expenses are taken on the first page of the 1040 form and reduce a taxpayer's taxable income.
When can you deduct moving expenses?
If you move to a new home because of a new principal workplace, you may be able to deduct moving expenses if the following tests are met: The new principal workplace is at least 50 miles farther from the taxpayer's old home and the new workplace is at least 53 miles from the old home.
Also, the taxpayer must work full-time in the general area for at least 39 weeks during the 12 months after the move.
Not all expenses related to the move are deductible.
The cost of transportation and storage of household goods and personal effects, up to 30 days after the move, can be deducted.
Travel, including lodging from the old home to the new home can also be deducted. Travel is limited to one trip per person. Which means each member of the household can move separately at separate times.
If the taxpayer drives his or her own vehicle, expenses can be figured either using actual out-of-pocket expenses for gas and oil (but not depreciation) or the standard mileage rate. Mileage for 2012 is .23 cents per mile.
Also deductible are the costs of connecting or disconnecting utilities required because you are moving your household goods, appliances, or personal effects.
What isn't deductible is the cost of meals while traveling, temporary living expenses, or house hunting expenses before or after the move. However, the cost of meals and temporary living expenses can be deducted as business expenses on Schedule A. These expenses must exceed the 2 percent of adjusted gross income to get the deduction.
As always, record keeping is important.
If the employer pays for the move and includes it as income, these expenses are deductible. Of course, the same guidelines as stated above must be met to include them as a moving expense.
For more information regarding moving expenses, visit irs.gov and type Pub 521 in search box.
Tracy Bunner is an enrolled agent and tax preparer with an office in Harrisville. She can be reached at firstname.lastname@example.org or 801-686-1995.