Two Exceptions You May Not Have Known About The IRS Moving Expense Deduction

The IRS lets people deduct their moving expenses, such as the truck rental, to help reduce their tax liability if they relocate to another area for work. Most people know the major points—you must move at least 50 miles away, can only claim expenses within the first 12 months of starting the job, and have to work full-time for a certain number of weeks—but may not realize there are exceptions to these rules that may let them still claim the deduction in cases where their moves may not otherwise qualify. Here's more information about two of them.

You May Have Longer than 12 Months to Move

To qualify for the tax deduction, you must move to the new location within one year of starting work in the new area. For instance, if your employer transfers your job to its office in another city and you commute there (or stay in temporary housing), you would need to officially move to the area within 12 months of your first day of reporting to work in the new place in order to claim the deduction.

However, you may still be able to get the deduction after the time limit has expired if you can provide the IRS with a compelling reason as to why you couldn't move to the new area within the required time frame. For example, you didn't move for 14 months because your spouse needed to stay in the area to complete treatment for a serious medical condition. The IRS may let you take the deduction since the circumstances prevented your relocation.

You May Not Have to Move as Far

As previously noted, your move generally only qualifies for the relocation deduction if you move at least 50 miles from your previous location. However, you may also be able to take the deduction if you are required by your job to live in a specific place (e.g. company housing), even though the minimum distance requirement is not met.

Another exception to the distance rule is you can take the deduction if moving to the new home means you'll spend less money or time getting to your new job. For instance, if your old home is 25 miles away but your new home is only 3 miles away (allowing for a shorter drive time), then you could deduct the expense associated with relocating.

There are many different ways to save money on your move, and taking advantage of the moving credit offered by the tax agency is a good one. If you're planning a move and want to save money on your truck rental, contact a rental agency near you or visit