Can a US expat deduct moving expenses for a move abroad




For American citizens living abroad taxes can be an extremely complex. When you first move abroad you are likely to incur many expenses. Several are deductible. Deductible moving expenses must have been paid or incur in connection with starting a new job at the new location. There are several rules and regulations around this matter, so it is best to consult a US Tax expert first (+44 (0)20 3829 3492).


The following are requirements that must be met to claim moving expenses:

·      Your move must be related to the start of work

·      You must meet the distance test

·      You must meet the time test.

If you meet the bona fide residence test or the physical presence test for at least 120 days in the year of your move, your moving expense is regarded as connected to your income entirely during that year. If your moving expenses spread over two years it is recommended that you request a filing extension for the tax return for the year of the move until after the end of the second year to make an accurate calculation.

What expenses can be deducted?

·      The cost of moving household goods and personal effects from your old house to your new house

·      Cost of traveling from an old house to the new house

·      Cosy of moving household goods and personal effects to and from storage

·      Cost of storing household goods and personal effects while at your new location


Are moving expenses between two foreign countries deductible?

Moving expenses between foreign countries are deductible if those expenses are allocable to income earned in the year of the move.



alistair bambridge