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relocation deduction moving in and out of state

it seems now federal level has no deduction anymore, only a few states has them. 

  • Arkansas
  • California
  • Hawaii
  • Massachusetts
  • New Jersey
  • New York
  • Pennsylvania

I am lucky that I work at MA and CA where both has moving expenses.

When I first moving into MA to start a new job, I use the MA deduction in 2021.

14 months later, I moved from MA to CA to start another job, I use the CA deduction in 2022.

 

Now I am wondering, could I have choose to deduct against the my MA tax 2022 for my MA-CA move (not double dip, choose MA instead of CA)? I am guessing probably not, but love to learn the rationale from experts in this forum.

What about some of my co-workers situation where they did not change employer, just change job locations, would they have the option to choose which portion of the state income tax to deduct? I think all of them deduct against CA.

 

My analysis is for a person that change job location or jobs from Western MA to Eastern MA, (hundreds of miles), regardless of which job they choose to deduct moving expense it does not matter, since it is all one state.  and whether or not they only change job location or change to a new job it also does not matter, since it all qualify under MA bucket.

When moving across state line, I think I need to move to start a new job in CA to qualify for CA deductible, same I need to move to start a new job in MA to qualify for MA deductible. Is this correct?

 

Thanks

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1 Reply

relocation deduction moving in and out of state

Great Question and yes there is no deduction for Job moving expenses for your  federal tax purposes . The law was changed by the 2017 Tax Act unless you are in the military and have some out of pocket expenses not covered by military allowances.  The states that due allow deductibility of Job moving expenses you have to be moving into the state for moving expenses to be deductible. Hope this answers your question

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