What are Qualified Moving Expenses?

What are Qualified Moving Expenses?

Now tax time is over, it’s never to early to begin planning for next year.  What are actually qualified moving expenses?  Sure you know that you need to meet certain requirements as far as time and distance go, but once you qualify what are the expenses you can write off when you move?  Check out this list of expenses that qualify for tax purposes.

  • Transit storage expenses
  • Relocation expenses (moving household goods and personal effects)
  • Travel from the old home to the new home

In general, moving expenses should be reasonable and make sense.  Of course, the IRS does not exactly define what they mean by “reasonable” so you may want to talk to your tax professional before filing your taxes.  In addition to the items above, these more specific expenses are often included in moving tax deductions:

  • Packing, crating, and transporting costs
  • Moving company charges
  • Storage and insurance costs for up to 30 days
  • Utility connection and disconnection charges
  • The costs associated with shipping pets or vehicles
  • Lodging during the move

If you are an employer, you may cover your staff’s moving expenses in a variety of ways.  You can either pay for all or just some of your employee’s moving expenses up front or you can reimburse them.  If you end up reimbursing the employee you do need to report that on your business taxes.  If you pay to a third-party, you do not.

Lance Grooms