DEFINITION of 'Moving Expenses'

Potentially tax-deductible expenses that are incurred when an individual and his or her family relocates for a new job or due to the location transfer of an existing job. After certain baseline criteria are met for time and distance, individuals can deduct qualifying expenses for roughly one year after beginning the new job

Basic categories of qualifying expenses include costs to pack and ship personal possessions, temporary storage fees and transportation costs.

BREAKING DOWN 'Moving Expenses'

The key phrase to consider (at least in the eyes of the IRS) is "reasonable costs" for moving yourself and your property. These costs include a moving van, storage unit and temporary insurance used in travel. Some expenses that are generally not deductible include house-hunting trips, meals during the move and the costs involved in selling an existing home.

People wishing to claim these deductions should keep good documentation of all potentially qualified expenses.

RELATED TERMS
  1. Tranportation And Storage Costs

    An moving expense deduction related to the costs of a taxpayer's ...
  2. IRS Publication 521 - Moving Expenses

    A document published by the Internal Revenue Service (IRS) outlining ...
  3. Job Hunting Expenses

    Costs that individuals may be allowed to deduct on their federal ...
  4. IRS Publication 535 - Business ...

    A document published by the Internal Revenue Service (IRS) that ...
  5. Deductible

    1. The amount you have to pay out-of-pocket for expenses before ...
  6. Lodging Expenses

    Costs for an overnight stay, usually in a hotel, that may be ...
Related Articles
  1. Taxes

    How To Deduct Your Job Search Expenses

    With approximately 12 million Americans out of a job right now, many people are spending significant dollars to be noticed by potential employers. Fortunately, some of these job-search costs ...
  2. Taxes

    Are Your Job Search Expenses Deductible?

    Looking for a job can be expensive. While some of the costs can be deducted, the IRS will not blindly sign off on them.
  3. Taxes

    Top Tax Tips to Deduct Investment Management Fees

    Investment expenses can be deducted by those who meet three main criteria. Here's what they are and how they work.
  4. Small Business

    Writing Off the Expenses of Starting Your Own Business

    Learn how to navigate the complicated rules for writing off the expenses of starting your own business. It could save you a lot of money.
  5. Taxes

    10 Tax Benefits For The Self-Employed

    Running your own business has both personal and financial perks.
  6. Financial Advisor

    20 Medical Expenses You Didn't Know You Could Deduct

    To lower your tax bill, be sure not to miss out on these commonly overlooked medical tax deductions.
  7. Taxes

    Increase Your Tax Refund With Above-The-Line Deductions

    Find out about these deductions and how you can use them to lower your tax bill.
  8. Taxes

    8 Tax Benefits For The Self-Employed

    Profitability in business depends on minimizing costs and maximizing resources. Here are several tax benefits that are available for the self-employed.
  9. Taxes

    An Overview Of Itemized Deductions

    Not taking the standard deduction this year could save you hundreds of dollars.
  10. Insurance

    What's a Deductible?

    With insurance, a deductible is the amount of money the insured pays out-of-pocket before the insurance company pays for the loss.
RELATED FAQS
  1. What are the most common business deductions and expenses for small businesses?

    Learn about some of the most common business tax deductions available to small businesses that can reduce net business expenses. Read Answer >>
  2. How is the deductible I paid for my insurance claim treated for tax purposes?

    Find out how your health insurance deductible is treated for tax purposes and under what conditions you may be able to deduct ... Read Answer >>
  3. Why are capital expenses (CAPEX) treated differently than current expenses?

    Learn the difference between capital expenditures, or CAPEX, and current expenses, and determine why they are treated differently ... Read Answer >>
  4. What are the most common operating expenses for an online business?

    Learn about the common expenses of online businesses and find out about some of the tax implications of new business expenses ... Read Answer >>
  5. In what instances does overhead qualify for certain tax allowances?

    Find out about instances in which overhead expenses qualify for tax allowances, including some common examples of tax-deductible ... Read Answer >>
  6. What are the deductions taken to determine AGI (adjusted gross income)?

    Read more about the deductions taken to arrive at adjusted gross income, or AGI, including the differences between above ... Read Answer >>
Trading Center