Deducting Your Moving Expenses: A Refresher for 2000 Tax Returns

January 15, 2001

(EVANSVILLE, Ind.) -- If you moved to a new home during 2000 and meet IRS requirements, you may be able to deduct some or all of your moving expenses. Atlas Van Lines has issued guidelines on deducting relocation expenses for the year 2000, with a reminder that IRS rules for moving deductions changed in 1994.

What's Allowed for 2000 Returns:
If the move qualifies, the basic moving costs are still deductible as long as you haven't already been reimbursed by your company or another party. Qualified deductions include the actual cost of transporting your household goods from the old residence to the new one; the cost of packing, crating, and unpacking (when a professional mover is used); and costs for insurance during transit and storage in transit (limited to 30 consecutive days). You may deduct mileage expenses under certain conditions, and you may deduct for the family's travel and lodging from the old residence to the new residence, not including meals.

Other Items Still Deductible:

The cost of shipping your automobileThe cost of transporting many types of petsThe cost of moving your personal belongings from a place other than your old residence - as long as the cost of this move doesn't exceed what it would have cost to move the items from your old residence.

For the Move to Qualify:
The move must satisfy these conditions in order for your relocation expenses to qualify as tax deductions:

Your new job location must be at least 50 miles farther from your former residence than your old job location.You must be moving to a new principal residence to work as an employee or as a self-employed individual at a new principal place of work.You must be employed full-time in the general vicinity of the new job location for 39 weeks during the 12-month period following the move. Self-employed people must continue to work in the new location for at least 78 weeks during the 24 months following the move, of which at least 39 weeks must be in the first 12 months.

Further Notes of Interest:

If you have not satisfied the above working requirements since the relocation but expect to in the succeeding tax year, you may still deduct moving expenses for the year that the move took place. If you fail to satisfy the working requirements in the year succeeding the move, you must make an adjustment in that year's returns -- adding back the amount of the previous year's deduction - or you must amend the prior year's return.Even if a move qualifies, expenses "in excess of a reasonable amount" may not be deducted.Foreign moves, military moves, people who work for more than one employer, and a few other situations are subject to special deduction guidelines.

If You're Planning to MovePlan as far ahead as possible for the relocation. Save receipts and other documents that substantiate any moving expenses. And keep receipts for the items you give to charity during the move. These may help you qualify for additional deductions. Be aware that moving deductions can be significant when a professional mover is used.

For more information on deducting moving expenses, contact a tax advisor or call the IRS Problem Solving Line at 1-800-829-1040 to ask for a guide on moving expenses. Atlas Van Lines can also offer its brochure, "How to Deduct Moving From Your Taxes." Call your nearest Atlas agent to request a copy, or visit the Atlas Web site at