Deduction for relocating to new job

[dandingge]

I relocated to another state for a new job at the end of last year. I didn't move my household at the time because there was no time for me to arrange everything. So I simply traveled to the new location and started working. Then I moved my household (car, furniture etc.) early this year. 

When I was filing tax return for last year, I was only able to claim a very small amount of relocation expense because that's what I spent on travelling to the new location without moving my things (car, furniture, etc.). The majority of the relocation cost happened this year, not last year when I started the new job. 

My questions are: 

1. Can I deduct the relocation expense that happened this year when I file tax return for this year, even though the "relocation to new job" happened last year?

2. I had to make two round trips from my new location to my old location to move everything. There were expenses for lodging (one night) on the way to the new location, rental truck/flight ticket, ground transportation, gas, moving labor, and meals. Can I deduct everything, or am I only limited to one one-way trip for the entire relocation experience? The biggest expense of the whole thing is rental truck, followed by moving labor. What should I do to legally claim the largest amount for deduction?

Thank you

[CalCountry]

You didn't mention whether you have been or will be reimbursed for your moving expenses by your company.  There are specific rules about how to deduct your expenses if reimbursed.  If not reimbursed, the following should be helpful.  You may wish to explore IRS Publication 521 for more detailed information on your relocation, whether or not reimbursed..

From the IRS Publication 521 at:
   https://www.irs.gov/publications/p521

"When To Deduct Expenses

You may have a choice of when to deduct your moving expenses.

Expenses not reimbursed.
 If you weren't reimbursed, deduct your moving expenses in the year you paid or incurred the expenses.
 
Example.
In December 2015, your employer transferred you to another city in the United States, where you still work. You are single and weren't reimbursed for your moving expenses. In 2015, you paid for moving your furniture and deducted these expenses on your 2015 tax return. In January 2016, you paid for travel to the new city. You can deduct these additional expenses on your 2016 tax return."

And about your travel and moving expense from the same publication:

"Household goods and personal effects.
 You can deduct the cost of packing, crating, and transporting your household goods and personal effects and those of the members of your household from your former home to your new home. For purposes of moving expenses, the term "personal effects" includes, but isn't limited to, movable personal property that the taxpayer owns and frequently uses.
 
If you use your own car to move your things, see Travel by car, earlier.

You can deduct any costs of connecting or disconnecting utilities required because you are moving your household goods, appliances, or personal effects.

You can deduct the cost of shipping your car and your household pets to your new home.

You can deduct the cost of moving your household goods and personal effects from a place other than your former home. Your deduction is limited to the amount it would have cost to move them from your former home."

"Travel expenses.
 You can deduct the cost of transportation and lodging for yourself and members of your household while traveling from your former home to your new home. This includes expenses for the day you arrive.
 
The day of arrival is the day you secure lodging at the new place of residence, even if the lodging is on a temporary basis.

You can include any lodging expenses you had in the area of your former home within one day after you could no longer live in your former home because your furniture had been moved.

The members of your household don't have to travel together or at the same time. However, you can only deduct expenses for one trip per person. If you use your own car, see Travel by car, earlier."

[dandingge]

@CalCountry Thank you very much for the reply. I will read that document you mentioned for further details.

None of my expenses was reimbursed. And the example you cited is similar to my situation, only that it is reversed: I traveled to work first and moved stuff later, while in the example the person moved stuff first and traveled to work later. So it looks like it is allowed for one to deduct the expenses of moving furniture etc. in one year and the expenses of traveling and lodging in the previous/next year.  Am I understanding this correctly?

Thanks a lot

[CalCountry]

As non reimbursed, you deduct the expenses you incur in the year you paid them.  The essence is that the calendar year doesn't make a difference either way.  As long as the expenses you incurred are associated with your relocation to your new job location, you should be good to go.

[dandingge]

@CalCountry Thanks a lot

[CalCountry]

p.s. -- If you pay by a credit card, the date you -charged- an expense is the date you "paid," irrespective of when you ultimately pay your credit card bill.

[dandingge]

@CalCountry I forgot to mention: for personal reasons I didn't move my furniture to my new location until about three months after I started the new job at the end of last year ( at first I just brought my clothes and personal items with me to the new location). I am assuming that the three-month gap wouldn't matter as long as I only deduct once for moving furniture (rental trucks etc.), correct? Thanks