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Take Advantage of Tax Deductions
CHECK WITH THE IRS OR YOUR TAX ADVISOR, but according to the Internal Revenue Service, you may be able to deduct your allowable moving expenses if your move is closely related, both in time and in place, to the start of work at a new or changed job location. You also must meet the distance test and the time test. The following information applies to moves within the United States. Note: Military persons should see Members of the Armed Forces in Publication 521, Moving Expenses, for special rules that apply to them.
Closely related in time.
You can generally consider moving expenses incurred within one year from the date you first reported to work at the new location as closely related in time to the start of work. It is not necessary that you arrange to work before moving to a new location, as long as you actually do go to work.
If you do not move within one year, you ordinarily cannot deduct the expenses unless you can show that circumstances existed that prevented the move within that time.
Closely related in place.
You can generally consider your move closely related in place to the start of work at your new job location 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:
- A condition of employment requires you to live at your new home, or
- You will spend less time or money commuting from your new home to your new job.
Distance Test
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 from your former home, or if you are a new entrant in the job market, at least 50 miles from the old residence. For example, if your old main job was 3 miles from your former home, your new main job must be at least 53 miles from that former home.
The distance between a job location and your home is the shortest of the more commonly traveled routes between them. The distance test considers only the location of your former home. It does not take into account the location of your new home.
Time Test
You will need to have worked full time as an employee for at least 39 weeks in the 1st 12 months after you arrived in the new area.
A Qualified Move
If you qualify according to IRS specifications, you can deduct the reasonable expenses of:
- Moving your household goods and personal effects (including up to 30 consecutive days of in-transit storage expenses), and
- Traveling (including lodging but not meals) to your new home.
You do not have to itemize deductions to deduct moving expenses. Complete and attach Form 3903, Moving Expenses, to Form 1040.
This information is current as of 5/30/06. Be sure to make sure these rules still apply at
Your move is a qualified move. You can deduct the reasonable expenses of:
- Moving your household goods and personal effects (including up to 30 consecutive days of in-transit storage expenses), and
- Traveling (including lodging but not meals) to your new home.
You do not have to itemize deductions to deduct moving expenses. Complete and attach Form 3903, Moving Expenses to Form 1040.
The information above was current as of 5/30/06. Be sure to check at http://www.irs.gov or with your tax advisor for current eligibility and regulations.
