The requirements for classifying it as a job-related move included: The IRS allowed these moving deductions only when the person was moving for job-related reasons. Prior to the Tax Cuts and Jobs Act, taxpayers moving for a job were allowed to claim moving expense deductions on their taxes.

Allowable IRS moving deductions before tax reform To get you up to speed with the ins and outs of the new tax law and how it affects those moving, read our guide to IRS moving deductions before and after tax reform, below. The majority of tax reform changes take effect in 2018 for tax returns filed in 2019. According to the IRS, “in addition to lowering the tax rates, some of the changes in the law that affect you and your family include increasing the standard deduction, suspending personal exemptions, increasing the child tax credit, and limiting or discontinuing certain deductions.” While the new law lowers tax rates for many, it also eliminates any tax-deductible moving expenses. In 2017 the Tax Cuts and Jobs Act was signed into law, affecting both individuals and businesses. Now, thanks to tax reform, the majority of taxpayers will no longer be able to claim a deduction on moving expenses. Under the previous law, those moving for work could deduct the cost of movers, travel and other moving expenses from their federal income taxes. Moving for work? You may want to brush up on the latest tax rules and regulations regarding moving expenses.

Business moving expenses deduction 2020