Moving expenses are deductible as an adjustment from income, and employment expenses are a miscellaneous itemized deduction.
To enter moving expenses, follow these instructions:
- Go to the Personal category in TurboTax.
- Go to the Deductions and Credits subcategory.
- Find the section labeled Other Deductions and Credits.
- Click start next to the line labeled "Moving Expenses"
- Continue through the moving expense entry screens until you reach a screen labeled Enter Your Moving Expenses. Enter the vehicle expenses on the line "Travel for You and Your Household", hotels on the following line.
The rules for moving expenses are found in IRS Publication 521. This is an excerpt from an explanation in IRS Tax Topic 455:
“You can deduct your moving
expenses if you meet all three of the following requirements:
- Your move closely relates to the start
of work
- You meet the
distance test
- You meet the
time test
Move Related to Start
of Work - Your move must
closely relate both in time and in place to the start of work at your new
location. You can consider moving expenses incurred within one year from the
date you first reported to work at the new location as closely related in time
to the start of work. A move generally relates closely in place if the distance
from your new home to the new job location isn't more than the distance from
your former home to the new job location. For exceptions to these requirements,
see Publication 521, Moving Expenses.
The distance
test - Your new workplace 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 location must be
at least 50 miles from your old home.
The time test - If you're an employee, you must work
full-time for at least 39 weeks during the first 12 months immediately
following your arrival in the general area of your new job location. If you're
self-employed, you must work full time for at least 39 weeks during the first
12 months and for a total of at least 78 weeks during the first 24 months
immediately following your arrival in the general area of your new work
location. There are exceptions to the time test in case of death, disability,
and involuntary separation, among other things. See Publication 521
for these exceptions.”
If you meet the requirements discussed
above, you can deduct the following expenses associated with your move:
- The cost of moving your household
goods and personal effects
- Storage Expenses - This is allowed for
a period of one month after the move from your former home.
- The Costs of
Travel and Lodging
