You may have changed jobs during the year or your employer may have transferred you to a new location. If your job change required you to move to a new location, and you meet the following qualifications, you can deduct your job-related moving expenses.
To qualify for a job-related moving expense deduction, your move must be closely related, both in time and in place, to the start of work at a new job location. You must also meet the specific requirements of the IRS Distance Test and Time Test.
Generally, moving expenses incurred within one year from the date you first reported to work at the new location are considered closely related in time to the start of work. You do not need to have a job arranged before moving to a new location, as long as you actually do go to work within the year.
If you do not move within one year of the date you begin work, you ordinarily cannot deduct expenses unless you can show that circumstances existed that prevented your move within that time. For example, you delayed your move for 18 months to allow your child to complete high school.
Generally, your move is closely related in place to your job if the distance from your new home to the new job location is not more than the distance from your former home to the new job location. A move that does not meet this requirement may qualify if you can show that you are required to live at your new home as a condition of your employment or that you will spend less time or money commuting from your new home to your new job location.
In general, your move will meet this test if your new main job location is at least 50 miles farther from your former home than your old main job location was from your former home. For example, if your former workplace was three miles from your former home, your new workplace must be at least 53 miles from that home.
If you are an employee or a self-employed taxpayer, you must work full time for at least 39 weeks during the first 12 months after you arrive in the general area of your new job location. Additionally, if you are a self-employed taxpayer, you must work for a total of at least 78 weeks during the first 24 months after you arrive in the general area of your new job location. Full-time employment depends on what is usual for that type of work in the area.
To meet this test, you do not have to work for the same employer for all 39 weeks or be self-employed in the same trade or business for the 78 weeks. If you are an employee, the 39 weeks you work do not have to be sequential. You must work full time within the same general commuting area for all 39 weeks (all 78 weeks if self-employed).
You can deduct the reasonable expenses you pay in connection with moving your household goods and personal effects (including in-transit or foreign-move storage expenses) and traveling (including lodging but not meals) to your new home.
You can deduct the following expenses for moving household goods and personal effects:
For example, Rosalita is a resident of North Carolina and has been working there for the last four years. Because of the small size of her apartment, she stored some of her furniture in Georgia with her parents. Rosalita accepted a new job and is moving to Washington, DC. It cost her $300 to move her furniture from North Carolina to Washington and $1,100 to move her furniture from Georgia to Washington. If Rosalita shipped her furniture in Georgia from North Carolina (her former home), it would have cost $600. She can deduct only $600 of the $1,100 she paid. The amount she can deduct for moving her furniture is $900 ($300 + $600).
Note: You cannot deduct the cost of moving furniture you may buy on the way to your new home.
If you use your car when moving, you can deduct your actual expenses (such as gas and oil) as long as you keep accurate records of each expense. You cannot deduct any part of general repairs, general maintenance, insurance, or depreciation for your car. You may decide to take the standard mileage rate instead of claiming your actual expenses. Whether you use actual expenses or the standard mileage rate to calculate your expenses, you can still deduct parking fees and tolls you pay when moving. The standard mileage rate for moving is 17 cents per mile.
You can deduct the cost of transportation and lodging for you and members of your household while traveling from your former home to your new home using the most direct route. This includes expenses for the day you arrive at your new home. You can include any lodging expenses you had in the area of your former home the day your furniture was moved.
You can deduct expenses for only one trip per person to your new home. You do not need to travel with or at the same time as other members of your household. Each person is allowed one trip.
The following is a list of expenses you cannot deduct as moving expenses:
If the moving requirements are met, complete Form 3903. The amount of deductible moving expenses from the form is then entered on Form 1040 as an adjustment to income.
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