Because of the Trump tax reform, starting from 2018 to 2025, the moving expense deduction will be no more. However, if you moved in 2017, you can still take the deduction. Moving expenses can be deducted from your income tax if you meet certain requirements:
- You moved within 1 year of starting your new job
- The difference between the commute to your new job from your old residence is at least 50 miles greater than the commute to your old job.
- You work full-time for 39 weeks the first 12 months and 78 weeks the first 24 months if you’re self-employed.
I didn’t meet this criteria because I was essentially unemployed for the 9 months prior to opening my practice. If you met this criteria in 2017, you can deduct the following expenses:
- Travel, including lodging, airfare, and gas (meals are not deductible).
- Movers costs, including shipping your car, as well as all packing and shipping costs.
- Temporary storage costs.
Moving expenses are above the line deductions taken from your adjusted gross income (AGI), so it won’t cut into your below the line deduction if you take a standard deduction.