All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

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Pioneer
Posts: 2
Registered: ‎04-10-2018

Relocation Deduction

Hello

We moved to a different state in October and stayed in a rental for 2 months before buying a house in December. The company paid relocation amount which was put in Box 1 in  W2 so fully taxable. The out of state move was done by company movers.

We paid for storage for 2 months and the move to our permanent house. Can we deduct these? We are also planning to deduct our flight tickets to the new state. 

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Associate (Neighbor)
Posts: 212
Registered: ‎07-22-2014

Re: Relocation Deduction

Hello, Ajain12, and welcome to the community.

 

Since your company paid for (at least part) of the moving costs, and that amount was included in your W-2, there should be no worries about that side of the equation.

 

On Form 3903 (Moving Expenses), the IRS will allow you to deduct up to 30 days of storage costs - which means, unfortunately, that half of your storage costs won't be helpful.  The costs to move items from storage to your new house is an expense which can be entered on the form.  You are also allowed to deduct the cost of travel from your old home to the new home - but only one trip.  (So you wouldn't be able to deduct the plane tickets and also the costs for an earlier trip when you were house-hunting.)

 

Hope that helps!

 

-kurt

Pioneer
Posts: 2
Registered: ‎04-10-2018

Re: Relocation Deduction

Thank you so much Kurt.

To elaborate, My husband and I work for the same company and the relocation was paid to him. He moved in July and I moved with all our stuff in October. So for him, it was 6 months, before he moved from rental to a permanent housing. Can we still claim the move from rental apartment+ garage storage to the new house?