ON AIR NOW

LISTEN NOW

Weather

cloudy-day Created with Sketch.
57°
Broken Clouds
H 77° L 61°
  • cloudy-day Created with Sketch.
    57°
    Current Conditions
    Cloudy. H 77° L 61°
  • cloudy-day Created with Sketch.
    73°
    Afternoon
    Cloudy. H 77° L 61°
  • cloudy-day Created with Sketch.
    72°
    Evening
    Partly Cloudy. H 77° L 61°
LISTEN
PAUSE
ERROR

The latest top stories

00:00 | 00:00

LISTEN
PAUSE
ERROR

The latest traffic report

00:00 | 00:00

LISTEN
PAUSE
ERROR

The latest forecast

00:00 | 00:00

Tax help: Tax deduction for moving expenses

Moving to a new homeinvolves a lot of planning and work, and it can be costly as well. If you are moving because you got a new job, or your current job changed location, you may be able to deduct your reasonable moving expenses on your income tax return.

NOTE: The moving expenses tax deduction is an “above-the-line” deduction, which means it is taken before your AGI (adjusted gross income) is calculated, instead of after, like most other deductions. Above-the-line tax deductions are subtracted from your gross income and the resulting number is your AGI. Therefore, above-the-line deductions apply whether you itemize or not. Above-the-line deductions, like the moving expenses tax deduction, are designed to help protect your personal exemptions and itemized deductions from phaseouts. Because of these characteristics, above-the-line deductions are often considered to be the most beneficial for taxpayers.

Who Can Deduct Moving Expenses — Tests for Eligibility

In order to be eligible to claim the moving expenses tax deduction, the IRS has three main requirements that you must meet:
• Your move is closely related to the start of work
• You meet the distance test
• You meet the time test

Move Related to the Start of Work

In general, you are allowed to deduct moving expenses that you incur within one year from your first day of work. Your move must be closely related to both the location of your new job and the time you start the new job. According to the IRS, your move is considered to be closely related in place as long as “the distance from your new home to the new job location is not more than the distance from your former home to the new job location.” Your home refers to your principal residence, which can be a house, condominium, apartment, mobile home or other similar dwelling.

READ: Important tips to help you achieve your financial goals

The Distance Test

To qualify for the moving expenses tax deduction, your new job location must be at least 50 miles farther from your old home than your old job location. If you did not have a former workplace, your new job location must be at least 50 miles away from your old home. The IRS states that the distance should be determined by using the shortest of the most commonly traveled routes (so you won’t be able to use the scenic route just to meet the mileage requirement).

The Time Test

To be eligible for the moving expenses tax deduction, you must also work full-time for an employer in the vicinity of your new job location for at least 39 weeks during the year following your move. It’s important to note that these weeks do not have to be consecutive or with the same employer, so you are free to change jobs after you move. There are also exceptions for disability, death, involuntary separation, and other special situations. Additionally, if your employer transfers you or fires you after you move, the IRS will overlook the 39-week requirement.

Deductible Moving Expenses

With the moving expenses tax deduction, you are allowed to deduct the non-reimbursed cost of moving household goods and personal belongings to a new residence. This can include the cost of transportation, packing, unpacking, storage-in-transit, and valuation. Note that each qualified expense is limited to 30 days — for example, you can deduct the cost of renting a storage unit for up to 30 days (if you cannot move into your new home right after leaving your old residence).

Moving expenses that qualify for this tax deduction include the following:

  • The cost of shipping automobiles and boats
  • The cost of transporting household pets (including dogs, cats, tropical fish, etc.)
  • The moving-related cost associated with connecting and disconnecting utilities
  • The cost of moving personal belongings from a place other than your old residence (such as a summer home or relative's home), but not exceeding what it would have cost to move them from your old residence
  • The cost of lodging (for you and other members of your household) while traveling to the new residence (but not the cost of meals)

READ: How to manage your digital afterlife

Make sure you keep track of your moving receipts so you can take advantage of the moving expenses tax break.

NOTE: You cannot deduct any moving expenses that are paid for by your employer — that means any costs covered by reimbursements from your employer. Additionally, keep in mind there are special rules for the moving expenses tax deduction if you are self-employed, married filing jointly, or a member of the armed forces.

Claiming the Moving Expenses Tax Deduction

To claim this tax deduction, your moving expenses should be figured on IRS Tax Form 3903 (Moving Expenses) and deducted as an adjustment to your income on IRS Tax Form 1040 (U.S. Individual Income Tax Return). Attach Form 3903 to the 1040 Form that covers the year in which you moved. You do not have to complete or submit a Schedule A to claim the moving expenses tax deduction.

According to the IRS, you should not file Form 3903 if all of the following apply:
• You moved to a location outside of the United States in a previous year.
• You are claiming only storage fees while you were away from the United States.
• Any amount your employer paid for the storage fees is included as “wages” in Box 1 of your IRS Tax Form W-2.

For More Information

For more information about the moving expenses tax deduction — including deductible and nondeductible expenses, special rules, and moves to locations outside the United States — please see IRS Publication 521 (Moving Expenses).

Elizabeth Rosen grew up near Boston and comes from a family of financial planners. She attended Carnegie Mellon University in Pittsburgh, Pa. where she studied professional writing. After graduation, Elizabeth moved to San Francisco where she worked for several years as the senior writer/editor and content manager for an online company. She now lives in Los Angeles working as a financial writer for numerous websites and print newsletters.

Read More
VIEW COMMENTS

There are no comments yet. Be the first to post your thoughts. or Register.

The Latest News Headlines

  • The Phoenix Suns made history two nights in a row. >> Read more trending news The Suns started the youngest lineup ever Thursday, with an average of 21 years and 14 days. Worse, the Suns were down to eight players and lost by 26 to the Brooklyn Nets. The lineup was younger than several of the Sweet 16 teams still in the NCAA tournament.  Friday also netted a loss, but Devin Booker kept them in it. He scored 70 points for the Suns, and helped Phoenix claw back from a 20-point first quarter deficit. Booker’s scoring eventually won over the Boston crowd, who began cheering for him as the Suns tried to keep the game going late, calling timeouts to give Booker a chance to score more points. He finished with the highest single-game total in franchise history, but lost to the Celtics 130-120. Booker joined Wilt Chamberlain, David Robinson, David Thompson, Elgin Baylor and Kobe Bryant as players to reach 70 in one game. Booker was 21 of 40 from the field, four of 11 from the 3-point range and was 24 of 26 shooting free throws. The former Kentucky star also had eight rebounds and six assists. He averaged 20.9 points per game before Friday. 
  • One person has died after a plane crashed into a home in a Marietta, Georgia, neighborhood Friday evening. The Federal Aviation Administration said a Cessna Citation I aircraft en route to the Fulton County Airport went down around 7:20 p.m. The pilot was the only person on the plane and died in the crash. Cobb County fire officials said the plane left from Wilmington, Delaware. Fire officials said the plane landed in the home's front yard and sent the house up in flames.  >> Read more trending news 'From what it looks like at this point, it came over from the top of the house and landed in the front yard,' Danell Boyd with the Cobb County fire department said.  The family was at church at the time of the crash and not at home.  Witnesses said the plan spun out and nose-dived to the ground. 'I heard a swoosh and then a clap and an explosion and I pretty much knew before I looked outside that it was a plane crash,' neighbor Joe Thomas said. A few homes were evacuated while firefighters investigated. The neighborhood will be blocked off for a time as National Transportation Safety Board investigators look into the crash.  'Seeing a plane on fire and a house starting to burn and wondering if your neighbors are OK -- it's not just something you hear on the news,' neighbor Samantha Strickland said. The FAA will investigate and the NTSB will determine the cause of the crash.  
  • On March 24, a surge of photos posted by everyday people and celebrities such as Taraji P. Henson and LL Cool J on social media show images with text claiming that 14 girls have disappeared in the last 24 hours in Washington, D.C., and the images have continued to pick up steam.   >> Read more trending news WRC reported however, that the information in those images is not entirely true. Here are things to know about the missing teens in Washington: Police say that 14 teen girls have not disappeared from Washington in one day. The girls pictured in the viral image went missing at different times. Relisha Tenau Rudd, pictured on the far left of the image, was last seen in Washington on March 1, 2014. Pheonix Coldon was last seen December 18, 2011 in St. Louis. Shaniah Boyd was last seen in Washington. Makayla Randall, pictured on the far right, has been missing since October 1, 2012 and was last seen in Oak Park, Missouri. WRC reported that police have changed their method of communicating information about missing persons. There has been no increase in the number of missing people.  The Metropolitan Police Department has changed how it shares information on missing persons. “We've just been posting them on social media more often,” Metropolitan Police Department spokeswoman Rachel Reid said. Chanel Dickerson, commander of the Washington police’s Youth and Family Services Division, told The Washington Post that the 211 people reported missing in January reflected  better reporting by families, not an increase in missing teens. Many of the missing teens are black or Latino. Outrage over the missing persons comes from a perception that people of color who are missing are not covered in the media as often as white missing persons. Derrica Wilson, the co-founder and chief executive of the Black and Missing Foundation, which works to raise awareness of missing people of color, told The Huffington Post 40 percent of missing persons in the U.S. are people of color. Police say there is not a known link between the missing persons and human trafficking. Police spokeswoman Karimah Bilal told WRC the teens reported missing so far in 2017 left voluntarily. WUSA reported that since many teens left on their own, Amber Alerts have not been issued for them. “Because of the number of releases, there have been concerns that young girls in the District of Columbia are victims of human trafficking or have been kidnapped,” Bilal said. “We look at every case closely to make sure that doesn't happen, but to my knowledge, that hasn't been a factor in any of our missing person cases,” Bilal said.  Washington Mayor Muriel Bowser and Washington police told WUSA they confirmed that there is no link between the missing persons and human trafficking. Lawmakers are calling on the FBI to investigate many of the missing persons cases. The Associated Press reported that Congressional Black Caucus chairman Cedric Richmond, D-La., and Del. Eleanor Holmes Norton, who represents the District of Columbia in Congress, sent a letter Tuesday that called for Attorney General Jeff Sessions and FBI Director James Comey to devote time to investigating the number of missing children in Washington and “determine whether these developments are an anomaly or whether they are indicative of an underlying trend that must be addressed.” 'Ten children of color went missing in our nation's capital in a period of two weeks and at first garnered very little media attention. That's deeply disturbing,' the letter sent to the Justice Department said. The number of missing persons in Washington changes daily. The Metropolitan Police Department reports the number of open and closed missing person cases and has them broken down by year, critical and non-critical, and juvenile and adult. Recent data from the department shows a decrease in reported missing person cases from 2,433 in 2015 to 2,242 in 2016. The regularly updated list of missing persons, including flyers of missing persons, are on the Metropolitan Police Department website. 
  • A 6-year-old boy is said to be in serious condition, after nearly drowning in the Bartram Springs community pool, just off Racetrack Road, near Philips Highway.   According to the Jacksonville Sheriff's Office, the child was with his family and lifeguards were on duty.   '[He] had some type of a condition, was observed under the water, was pulled out of the water, basic life support was initiated on the child,' explains a JSO officer.   The boy was rushed to Baptist South and eventually transferred to Wolfson Children's Hospital.
  • A Texas couple was charged with child endangerment Thursday after a woman told Harris County sheriff’s deputies that she found their 8-week-old child in the middle of a parking lot, according to multiple reports. >> Read more trending news A woman called police Tuesday night after finding the baby boy strapped to a car seat in a parking space in a Katy strip mall, the Houston Chronicle reported. The child was cold and fussy by the time the woman who called police, Dee Griffin-Stevens, found him, according to KHOU. “I just pictured my own children when they were that little,” she told the news station. “I call him ‘baby love,’ because I don’t know his name and probably won’t ever know his name, but I loved him and took care of him.” Authorities estimated that the child was left for at least 45 minutes before he was found. An employee at a nearby pizzeria recognized the infant and called his parents, according to KHOU.  Deputies arrested Sarah Shibley, 33, and Gary Collins, 39, on charges of child endangerment. “Shibley, who works at the pizzeria, said she left the child in the parking lot where she works and thought his father placed him in a car,” KHOU reported. Shilbey was released on $2,000 bond, according to the Chronicle. Collins remained jailed Friday.

The Latest News Videos