Moving Expenses

If you moved because of a change in your job location or because you started a new job, you might be able to deduct those moving expenses if your move was closely related to the start of work. Qualification to take the deduction depends on meeting both a distance test and time test, with one exception if you are a member of the armed forces and your move was due to a permanent change of station.

Test 1 - Your move will meet the distance test if your new main job location is at least 50 miles farther from your former home than your old main job location was. Use the shortest distance of the most commonly traveled routes between these points. To determine this, first figure the distance between your former residence and your new job and then subtract the distance between your former residence and your old job. If the result is 50 miles or more, you have met the distance test. For example, if the distance from your former residence to your new job is 70 miles and the distance from your former residence to your old job is 5 miles, you will meet the distance test.

Test 2 - The second test concerns time. If you are an employee, you must work full–time for at least 39 weeks during the 12 months right after you move. If you are self–employed, you must work full time for at least 39 weeks during the first 12 months and for a total of at least 78 weeks during the first 24 months after you move. There are exceptions to the time test in case of death, disability and involuntary separation.

If you meet these requirements, you can deduct reasonable expenses of moving your household goods and personal effects to your new home. You can also deduct the expenses of traveling to your new home, including your lodging expenses. However you cannot deduct meals or any moving expenses that were reimbursed by your employer. For additional information please refer to IRS Publication 521 available at www.IRS.gov .