Income Tax Preparation
GainsKeeper Compatible
  Timing the Deduction

If you, like most people, are a cash-method taxpayer, you can deduct your moving expenses either when you owe them, or when you pay them. If you moved near the end of the year, you may be able to deduct some expenses in two different calendar years.

If you are reimbursed for moving expenses by your employer, you may be able to deduct the expenses in the year you receive reimbursement, even if that's not the same year that you paid the expenses. You can do this if either of the following is true:

  • You actually paid the expenses in the year preceding the reimbursement.
  • You actually paid the expenses in the year after you received the reimbursement, and you paid them on or before the due date of the tax return for the reimbursement year.

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