Moving expenses span two years (Dec and Jan). Which year do I deduct them?

[steveo1]

Rented a uHaul on Jan 6, 2016. Loaded the truck and moved on Jan 8. However, we incurred moving expenses in December 2015 too. Do I deduct December's expenses on the 2015 taxes, and then January's on 2016 taxes? Or do I deduct all of them on 2016 taxes? Or am I only allowed to deduct once, so I just have to pick which year gives me the best benefit?

[SweetieJean]

Was this due to a job related move?

[steveo1]

yes

[AnnetteB · Accepted solution]

The answer to your question depends on whether you are being reimbursed for your expenses. 

If there is no reimbursement, then you can deduct your moving expenses in the year that you paid them.  So, deduct the expenses paid in 2015 on your 2015 return and deduct the 2016 expenses on your 2016 return.  You will enter the same criteria to qualify to deduct the moving expenses on both the 2015 and 2016 tax returns (for example, the miles from your old home to old workplace and old home to new workplace), so keep this information in your files. 

If you are reimbursed for the expenses and you use the cash method of accounting, then you can deduct the expenses either in the year they were paid or in the year that you are reimbursed. 

For more information, take a look at IRS Publication 521 Moving Expenses.  The section that addresses when to deduct moving expenses starts on page 12 of the PDF document.