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How to Claim Moving Expenses as a Tax Deductions in Texas

Moving Taxes

Moving expenses can be claim on your taxes in Texas but like anything tax and government related, it can be tricky and there are laws that must be adhered to. Most people moving for work want to know how to claim moving on taxes. So we’ve decided to create this post to provide detailed information so that our customer can claim moving expenses without having to call up the IRS for information.

Tax write offs for moving is easy, if you pay attention to the details and ensure you fill all the correct Texas tax forms and tax related forms. The most important thing to remember is that you can only claim moving expenses if they relate to work. If you are moving to Frisco for a new job or moving to get closer to work, you can write off those moving expenses.

How to Claim Taxes When Moving for Work:

Moving expenses are an adjustment to income, not an itemized expense. You can only claim moving expenses on your taxes if you paid for moving personally. Any corporate moving expenses paid by your company will not count as tax deductible expenses.

If the amount your company paid to relocate you exceeds the amount of the move, you cannot claim any moving expenses on your tax forms. Instead, you would claim the difference as taxable income.

Moving Tax Form:

Use IRS Form 3903 to claim the cost of moving expenses on your 1040 income form. The 3903 form is a moving expenses tax deduction calculator, with all the pertinent information contained within.

Print out a form at the link above and keep it handy as a reference as you collect receipts and budget for the move.

Two Things Needed to Qualify for Tax Deductible Moving Expenses

1 – Moving Timeline

Your moving date must be within 39 weeks, or just under 8 months of you starting your new job. That means you can move to a new area for a job, or you can start a job and then move closer to it within a few weeks. The only exception is if your family moves to be with you after the 39-week limit is met. Exceptions may be because family members are receiving medical treatment, or a child is finishing the school year.

2 – Moving Distance

You new job must be an additional 50 miles further away than your old job was from your old home. Example: if your old job was 20 miles from your old home, your new job should be at least 70 miles from your old home to be eligible for tax deductions from moving costs. The only exception is for military members who are moving permanently after a change in status, i.e. retirement.

Remember, the moving expenses you claim on your taxes should be reasonable.

List of Deductible Moving Expenses:

  • Gas
  • Depreciation from Mileage
  • Storage (less than 30 Days)
  • Rented moving supplies
  • Tolls
  • Parking fees
  • Lodging

Moving Costs That Are NOT Tax Deductible:

  • Meals
  • Fees associated with the lease for either new or old home
  • Any expenses related to your new home
  • Any costs of traveling to “house hunt” or “scout” before the move
  • Any expenses that your employer reimburses you

We hope that this has been a helpful guide to moving deductions and overall taxes. For any more information, or to get started on your next move, call our Dallas Fort-Worth movers.