When relocating for a new job, you may be eligible for a relo package–monetary compensation to cover the cost of your moving expenses in exchange for relocating for employment. However, if your employer does not offer to pay for your move, you may be able to deduct the related cost off your taxes
Since tax season is upon us, now is the time to find out if you qualify!
According to the IRS, the three requirements your move must meet to be tax-deductible are:
It’s at least 50 miles in distance. To be tax-deductible, your move must be more than 50 miles from your previous home.
It’s closely related to the start of work. Any moving expenses you write off on your taxes must have been incurred no more than one year after you begin work.
It meets the time test. To be eligible, you must be able to prove that you have been employed with the company full-time for at least nine months during the one year period following your arrival in your new area.
Note: Members of the military do not have to pass the time and distance requirements.
What can you deduct?
The following cost are elgible for tax refund.
Packing costs (labor, supplies)
Transport costs (truck rental, moving company)
Tolls and parking fees incurred from car travel
Connecting and disconnecting utilities
Auto transport services
How to file
You will need form 9309 and all moving expense-related receipts, bills, mileage logs, credit statements, and other relevant documents. Make sure to keep your bill of lading or any other moving service contracts.