If you’re in the military and moving due to a permanent change of station, you can deduct moving expenses on your federal tax return. However, for non-military individuals, moving expenses are generally not tax-deductible on federal returns but may be deductible on state income taxes depending on the state regulations..
What qualifies as a moving expense?
-
Examples of moving expenses include packing and unpacking services, storing and insuring belongings, and travel expenses from old home to new home.
-
Additionally, out-of-pocket expenses for gas and oil, as well as mileage reimbursement rates, may also be considered moving expenses.
-
However, certain expenses like home improvements, car maintenance, or fees for new licenses are typically not classified as moving expenses.
Who qualifies for the IRS moving expense deduction?
The IRS moving expense deduction is typically available only to military personnel who are moving due to a permanent change of station. State tax regulations may vary, with some states allowing deductions for all individuals, while others restrict it to active duty military members.
Qualifying for the deduction usually involves moves between the soldier’s home and first post of active duty, between permanent posts of duty, or from the last post of duty to the soldier’s home within a specific timeframe.
How to deduct moving expenses
To claim the moving expense deduction, eligible individuals can utilize IRS Form 3903 to reduce taxable income on IRS Form 1040. Special rules may apply for storage fees incurred while out of the country during the tax year.
sentence: Please let me know if you have any questions or concerns.