If you moved due to a change in your job or business location in NYC, or because you started a new job or business, you may be able to deduct your reasonable moving expenses but not any expenses for meals. You can deduct your moving expenses if you meet all three of the following requirements:
What’s New
Suspension of moving expense deductions. For tax years 2018 through 2025, the deduction of certain moving expenses is suspended for nonmilitary taxpayers. In order to deduct certain moving expenses, you must be an active member of the military and moving due to a permanent change of duty station. For more information, see Who Can Deduct Moving Expenses , later.
Moving expense reimbursements. For tax years 2018 through 2025, reimbursements for certain moving expenses are no longer excluded from the gross income of nonmilitary taxpayers. For more information, see Reimbursements , later.
Standard mileage rate. For 2018, the standard mileage rate for using your vehicle to move to a new home is 18 cents a mile. See Travel by car under Deductible Moving Expenses.
Below was the old tax code:
Your move closely relates to the start of workYou meet the distance testYou meet the time test
Move Related to Start of Work – Your move must closely relate both in time and in place to the start of work at your new location in NYC. You can consider moving expenses incurred within one year from the date you first reported to work at the new location as closely related in time to the start of work. A move generally relates closely in place if the distance from your new home to the new job location is not more than the distance from your former home to the new job location. For exceptions to these requirements, see Publication 521, Moving Expenses.
The distance test – Your new workplace must be at least 50 miles farther from your old home than your old job location was from your old home. If you had no previous workplace, your new job location must be at least 50 miles from your old home.
The time test – If you are an employee, you must work full-time for at least 39 weeks during the first 12 months immediately following your arrival in the general area of your new job location. If you are self-employed, you must work full time for at least 39 weeks during the first 12 months and for a total of at least 78 weeks during the first 24 months immediately following your arrival in the general area of your new work location. There are exceptions to the time test in case of death, disability, and involuntary separation, among other things. See Publication 521 for these exceptions.
Members of the Armed Forces
If you are a member of the Armed Forces and your move was due to a military order and permanent change of station, you do not have to satisfy the distance or time tests.
Reporting Moving Expenses
Figure moving expenses on Form 3903 (PDF), Moving Expenses, and deduct as an adjustment to income on Form 1040 (PDF), U.S. Individual Income Tax Return. You cannot deduct any moving expenses covered by reimbursements from your employer that are excluded from your income.
Additional Information
For more information on deductible and nondeductible moving expenses and information on moves between locations in and outside NYC or the United States, refer to Publication 521, Moving Expenses.
