In many cases, much of the cost of a long distance move can be recovered through tax incentives and breaks. The Internal Revenue Service (IRS) states that if your job or business required you to move, you may deduct reasonable moving-related expenses. To find out if you qualify for this tax break, the IRS requires that any new place of employment be at least 50 miles farther from your previous residence than the distance from your old job. In cases where a person was not employed, the move has to be at least that distance from your previous home. Another condition of the IRS is that the person be able to prove that they are employed full-time, for a minimum of 39 weeks, for the first year immediately after your move.
You do not have to remain at the same job for that year, just be employed for that number of weeks at a job. People who are self-employed must work for at least 39 weeks in the first year and a minimum of 78 weeks in the first two years at the new location. Military personnel who have been ordered to move also qualify for this tax deduction without needing to meet the employment and distance criteria, as long as the move is permanent
With regard to your initial moving expenses, keep all receipts for the move as well as moving-related insurance, and even the cost to disconnect and connect your utilities is deductible. Other deductions include reimbursements of 19 cents per mile for gas (for 2011) to reach your new home, the cost of a hotel room, but not any meals, the fees for storing your possessions for up to one month, the cost of moving your pets and shipping charges if you shipped a vehicle.
Please note that the IRS will not allow any moving expenses to be deducted from your income tax if you got any moving reimbursements from your employer.
Some other expenses that are not deductible include real estate taxes, utility security deposits and costs incurred while looking for a new home.