Deductible Moving Expenses
Moving to a new location to take a new job or start a new business is something that hopefully doesn't happen every year. However, if you did move last year, your moving costs may have eaten up a significant portion of your income.
The tax laws permit some limited tax breaks for job-related moves, if you meet all the requirements. If your employer pays for some or all of the costs, you won't be taxed on the reimbursements. And if you pay for the costs yourself, you can deduct them "above the line"; that is, you don't have to itemize your deductions in order to get the benefit of your moving expenses. Moreover, your moving expense deduction will serve to reduce your adjusted gross income (AGI), which may help you qualify for other tax breaks that are phased out at higher AGI levels.
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