What Can I Write Off on My Taxes for a Job Relocation?
- You can include the reasonable costs of moving your belongings and those of your household from your old home to your new home. If you pay to have your car or pets shipped to your new home, those costs can also be included. In addition to physically moving your goods, you can also include the costs you pay to connect or disconnect utilities because you are moving your belongings.
- You can include the travel costs for each member of your family. If you drive, you can use either your actual expense, such as gas and oil, or the standard mileage rate. As of 2011, the standard mileage rate equals 19 cents per mile for the first six months and 23.5 cents per mile for the last six months of the year. If you take a plane, train, bus or other method of transportation, use the cost of your ticket. If different members of your household use different means of transportation, you can include all of the costs. For example, if you drive the car and incur actual expenses of $250 and your wife flies with your two children at a cost of $700, your total deductible travel expenses equal $950.
- You can also include certain lodging and storage costs in your moving expenses deduction. The IRS permits you to include the costs of lodging for one day in the area of your old home after you can no longer live in your old home, as well as lodging as you travel. However, you cannot include lodging costs if you extend your trip to sightsee or visit relatives not directly on the way. You can also include the cost of storing your furniture for up to 30 consecutive days after arriving at your new home.
- You cannot include any costs for which you received reimbursement from your employer to assist in your relocation. For example, if your costs total $5,000 but your employer reimburses you $3,400, you can only deduct $1,600 on your income taxes. If you already deducted your costs and then receive reimbursement in a later year, include the amount of reimbursement on line 21 of your Form 1040 to make up for the deduction you took the year before.