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Level 2
posted Jul 28, 2021 12:36:25 PM

What expenses should I keep track of if I am moving to another state?

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2 Replies
Expert Alumni
Jul 28, 2021 12:49:14 PM

Hello!

 

According to the article found HERE 

 

Only if you’re active-duty military and were ordered to move as the result of a PCS (permanent change of station), you can deduct your out-of-pocket moving expenses to your new post, including travel and lodging (but not meals). You cannot deduct moving expenses for which you were reimbursed, nor can you deduct moving expenses that were paid for by the government.

For everybody else, the moving expense deduction has been suspended for tax years 2018 through 2025 as a result of the Tax Cuts and Jobs Act that was signed into law in late December of 2017.

 

Keep in mind that you may have to file 2 part year returns (depending on if the states require a tax return to be filed).

 

Hopefully this answered your question!

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For future reference you may find these helpful also:

 

How do I file a part year state tax return? 

How do I split income on a part year state tax return? 

 

Employee Tax Expert
Jul 28, 2021 12:50:37 PM

Hello there:

Here is a resource that highlight the most common moving expenses that you need to track:

https://turbotax.intuit.com/tax-tips/jobs-and-career/guide-to-irs-form-3903-moving-expenses/L6CwmGm3K

 

I think it also important to understand those expenses that you cannot deduct. The following expenses are listed in the IRS instructions as items you cannot deduct as moving expenses (please refer to the instructions for Form 3903 - https://www.irs.gov/instructions/i3903#idm140259967722576:(

  • Any part of the purchase price of your new home.

  • Car tags.

  • Driver's license.

  • Expenses of buying or selling a home (including closing costs, mortgage fees, and points).

  • Expenses of entering into or breaking a lease.

  • Home improvements to help sell your home.

  • Loss on the sale of your home.

  • Losses from disposing of memberships in clubs.

  • Mortgage penalties.

  • Real estate taxes.

  • Refitting of carpet and draperies.

  • Return trips to your former residence.

  • Security deposits (including any given up due to the move).

  • Storage charges except those incurred in transit and for foreign moves.