You’re excited about the opportunity to move for a job. After all, you see the value of moving away if it means moving up in your career. Being able to deduct your moving expense would be the icing on the cake. The question is, can you actually do this. The short answer is: not for most taxpayers for tax years 2018 through 2025, according to TaxAudit, which has received several glowing audit defense reviews in recent years. However, special rules apply for taxpayers in the military who meet specific criteria..
Before the tax year of 2018, you were allowed to deduct your moving expenses if you moved to a workplace located over 50 miles away from your previous workplace, for your main job. However, all of this changed when changes were made to the tax laws in the latter part of 2017, according to tax audit reviews. At that time, the ability to deduct moving expenses was eliminated for the tax years ranging from 2018 to 2025. However, the good news is that you can still take advantage of this deduction if you are in the military.
If you are on active duty and the government orders you to relocate to a different permanent station, you can deduct your moving costs from your taxable income. These costs include not only your own personal moving expenses but also those associated with your children and spouse. In addition, these costs include moving all of your personal items, such as your household goods. You may also deduct any travel costs associated with your move. Still, you can’t claim these expenses on your taxes if the government paid for them directly or reimbursed you for them later.
If you decide to take advantage of this moving-cost deduction for military members, make sure that you maintain solid records of your moving-related expenses. This will put you in the best position to take full advantage of the moving-cost deduction to which you are entitled.