Are my moving expenses deductible?
People commonly wonder whether they can deduct moving expenses and, if so, how much? The rules about moving expenses are fairly expansive but, in a nutshell, there are three criteria that determine if the expenses are deductible or not.
1- The move must be closely related to the start of work. As a general rule, if you move within a year of reporting to a new job and your new home is closer to your new job than your old home is to your new job, you probably meet this requirement.
2- The move must pass the distance test. This test requires that your new job be at least 50 miles farther from your former home than your old job was from your former home. For example, if your old job was 8 miles from your old home, your new job must be at least 58 miles away from your old home.
3- Your new job must pass the time test. This test requires that you work full-time in your new area for 39 weeks of the first 12 months after arriving in the area.
For each of the above criteria, there are additional details, exceptions, etc. that govern who may or may not deduct moving expenses. If you have moved for work, give Brandon or Bruce a call and we would be happy to help you figure out how to best use your moving expenses on your tax return.
Below is a link to a more detailed explanation of deductible moving expenses:
Moving ExpensesLabels: deductions, moving expenses, tax
