moving deductions

Moving Tax Breaks

Moving addresses, whether it’s done on a temporary or permanent basis, can be a lot to handle for most instances. That’s primarily why Neo Movers is here. We know that your move is made for a reason, so we want to support you with this potentially life-changing act by giving you the smoothest and most secure moving experience possible.

For most moving companies, concern for their customers would immediately end as soon as they’re able to drop off all of their customer’s belongings to the new place. It’s a different case for Neo Movers. With us, we place a high value on customer service, so much so that we’d like to think of everything that can possibly help anyone when it comes to moving.

This leads us to the useful fact of receiving a tax break when you have moved. Before anyone gets excited though, let me just clarify that the moving tax break is only for those who have moved locations because of their jobs. So, if you find yourself in this category, listen up! There are some things you’d need to check in order to qualify.

Who qualifies for moving tax breaks?

There are two main things you have to qualify for. First off being that you should be a full-time employee who’s worked a minimum of 9 months or 39 weeks right after moving in to your job’s location. Or, you may be a full-time entrepreneur or self-employed who’s also worked a minimum of 9 months or 39 weeks and completed a minimum of 78 weeks of work on the first year that you have moved in to your work location.

The second important qualifier is the distance between your previous address and your general job site. Check if they are at least 50 miles apart from each other for you to make the cut.

What are the exceptions?

There are a few exceptions to the rule. These are cases of death, disabilities, involuntary separation, and for those employees who have already received compensation from their employers for their moving expenses.

Members of the armed forces are also not required to observe these qualifications as they follow different entitlements and specifications.

How do you report moving tax breaks?

Hooray for you if you qualify for the moving tax break! In order to take advantage of your state reimbursement, all you need to do is fill in Form 3903 to get your moving expenses figured and then you shall see them already deducted on Form 1040 for your reported income. Please see more details at the official IRS publication.