February 9, 2019

Employment Related Moving Expenses: Tax Deduction Was All But Eliminated On January 1, 2018

The Tax Cuts and Jobs Act of 2017 included a significant change to the tax deductibility of employment related moving expenses.

Unless you are a member of the Armed Forces, all employment-related moving expenses are eliminated.  Yep.  Every single one.

Individual Income Tax Preparation
Employment Related Moving Expenses


Prior to 2018, with certain underlying requirements, employed and self-employed taxpayers could deduct reasonable moving expenses if the move was necessary due to starting work in a new location.  These deductions - which could be significant - included such things as:
  • Packing and transportation of household goods and personal effects, and
  • Travel costs for the taxpayer and family members to the new residence, including lodging but not meals.
Beginning January 1, 2018, employment related moving expenses are only available to members of the Armed Forces.  If you planned to otherwise deduct these expenses on your 2018 individual income tax return, you're out of luck.

Questions about individual income taxes?
About Mary Rae Fouts, EA

Mary Rae Fouts, EA provides tax, insurance consulting, employee benefits consulting, and expert witness services to clients throughout the United States.  For more information visit FoutsFinancialGroup.com.

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