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Date posted: August 24, 2007

Can we deduct our moving expenses and job-search costs from our taxes?

My husband graduated from medical school a few months ago and we moved to California, where he's doing his residency. Can we deduct our moving expenses and his job-search costs from our taxes?

— Submitted by Norris

You can deduct your moving expenses if the new job is more than 50 miles from your old residence, but there's no break for expenses related to first-job searches. And you'll be able to deduct the costs of packing, storage (within 30 days of the move), and hiring a moving company or renting a moving truck, as well as one-way travel expenses to your new home for everyone in the household. You don't need to itemize to deduct these expenses; this is an above-the-line deduction.

Unfortunately, you can't deduct his job-search costs, because those seeking employment for the first time cannot deduct their job-hunting costs. Likewise, those switching careers cannot deduct expenses incurred seeking employment in a new trade or business.