Moving Expenses and Tax Deductions – What Are the Requirements

Posted on
1 min to read

Moving is rarely a fun experience for anyone, but there are times when it is necessary for a variety of reasons. In most cases moving is expensive, however there are some cases when you may qualify for deductions on your income taxes which will help to relieve some of this expense. Whether you move yourself or hire a moving company there are 3 basic criteria which must be met in order to qualify to deduct moving expenses on your income tax return. These criteria include the following:

• Related to the start of work
• Distance Test
• Time Test

Even if you qualify for tax deductions of moving expenses under these guidelines, there are still certain requirements that must be met under each.

Related to the start of work

If you move because you are starting a new job then you may be able to deduct these expenses from your tax return if the move is closely related both in place and in distance to your new job. Simply put this means that you have to make this move within 12 months of starting the new job. It is not necessary that the job be pre-arranged as long as you do begin work within 12 months of making this move. In some cases exceptions may be made to this rule if you can show a valid reason why you waited longer than the 12 month time period to move such as having children in school or other qualifying reasons.

Distance Test

To qualify for moving expense deductions under the distance test rule the distance between your old home and old job must be greater than 50 miles plus the distance between your old home and old job. Simply put this means that you need to clock the distance between your old home and your old job and then add 50 miles to that distance.

Time Test

In order to qualify for moving expense deductions under the time rule you must work a total of 39 weeks or more in the new location. This rule is probably the easiest one to qualify under because these 39 weeks do not have to be consecutive as long as they are within the 12 months and it is not required that these 39 weeks be at the same job. If you are self-employed the requirements are a little different, you must work the 39 weeks during the first 12 months of your move and then another 39 weeks during the next 24 months for a total of 78 weeks. While this work must be in the same area, it is not required that it be the same job or even the same trade as long as the 78 weeks criteria is met.

If you are still unsure if you meet the qualifications for moving expense deductions your accountant can help you determine your eligibility. It is very important that you save all receipts related to your move should they be needed for verification. This is vital if you plan to use these expenses as tax deductions.

The post was provided by, an online portal of local movers and moving labor providers.

Get an instant quote