Job-Related Moving Expenses Can Be Tax-Deductible

If you’re moving due to a job transfer or change, your moving expenses can be deductible as an above-line tax deduction. Here are the IRS Rules:

  1. Move must be closely related to start of work Generally,
    you can consider moving expenses incurred within one year from the date you
    first reported to a new location, as closely related in time to the start of
    work.
  2. Distance Test Your move meets the distance test if your new
    main job location is at least 50 miles farther from your former home than your
    previous job location was.
  3. Time Test 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, or at least 78 weeks during the first 24 months if you are
    self-employed. If your income tax return is due before you’ve satisfied this
    requirement, you can still deduct your allowable moving expenses if you expect
    to meet the time test in the following years.
  4. Travel You can deduct lodging expenses for yourself and
    household members while moving from your former home to your new home. You can
    also deduct transportation expenses, including airfare, vehicle mileage, parking
    fees and tolls you pay to move, but you can only deduct one trip per person.
  5. Household goods You can deduct the cost of packing, crating
    and transporting your household goods and personal property. You may be able to
    include the cost of storing and insuring these items while in transit.
  6. Utilities You can deduct the costs of connecting or
    disconnecting utilities.
  7. Nondeductible expenses You cannot deduct as moving
    expenses: any part of the purchase price of your new home, car tags, drivers
    license, costs of buying or selling a home, expenses of entering into or
    breaking a lease, security deposits and storage charges except those incurred in
    transit.
  8. Form You can deduct only those expenses that are reasonable
    for the circumstances of your move. To figure the amount of your moving expense
    deduction use Form 3903, Moving Expenses.
  9. Reimbursed expenses If your employer reimburses you for the
    cost of the move, the reimbursement may have to be included on your income tax
    return.
  10. Update your address When you move, be sure to update your
    address with the IRS and the U.S. Postal Service to ensure you receive refunds
    or correspondence from the IRS. Use Form 8822, Change of Address, to notify the
    IRS.

For

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