Moving from one home to another can be expensive. Packing materials, moving company expenses, not to mention your travel time – all these can add up. Hopefully, you’ve kept all you records and receipts so that come tax time, you’ll be able to deduct the expenses on your return.

Are You Qualified?

According to the IRS, you may be qualified to deduct your moving expenses if you move to a new place because of work or to look for work. Also, you must satisfy the distance test and time test. First, the distance test requires that “Your new job must be at least 50 miles farther from your old home than your old job location was from your old home. If you had no previous workplace, your new job must be at least 50 miles from your old home.” For example, if your previous job required you to commute 40 miles from your old house, and you found a new job that was 100 miles away. You therefore decide to move closer to your new job and so you can deduct your expenses. Next, the time test simply says that you must be employed for at least 39 weeks following your move, unless you get laid off or if you get transferred. If you’re in the military and the move is because of a permanent station change, then are immediately qualified.

What’s Deductible?

If you’re qualified, then you can deduct all “reasonable expenses” that you have incurred to move your goods to the new home, including insurance, hookup and reconnection of utilities and storage for up to one month. Plus, you can also deduct your and your family’s traveling expenses and lodging expenses, eve your pet’s. Food and meals, however, are not included.  If your company paid for any expenses, then you can deduct anything over the amount they provided. These deductions are considered “above-the-line” – there’s no need to itemize them and they can be directly deducted.

Where can you claim the deductions?

To claim moving expenses, fill out Form 3903 and report them on Line 26 on Form 1040. If you’re married filing jointly, then only one spouse can claim the deduction.

So, remember to save all those receipts, so you can get a big tax break for the year.

For further infomation, download Publication 521: Moving Expenses from the Internal Revenue Service.