*REASON FOR MOVING*

Not all relocations will be eligible for moving expense tax deductions. In order to be eligible for moving expense tax deductions you will need to be relocating for a new job. Unfortunately moving for any other reason aside from job relocation renders you ineligible for moving expense tax deductions.

*TIMING*

The timing test is the most simple of the tax laws. Moving expenses will be eligible for tax deduction if they are incurred within one year of reporting to work in your new location. The only aside for this rule will be allowed if just cause is shown for the delay in moving expense.

*DISTANCE*

The distance test is far more complicated that any of the other tax laws. If the distance from your new home to your new job location is shorter than the distance from your old home to your new job location

AND

Your new job is at least 50 miles farther from your old home than your old job (if the distance between your old home and your old job is 8 miles then the distance between your new job and your old home must be at least 58 miles).

OR

If you can not meet this first distance test but you can prove that you are required to move to a new home to accept the new job or your cost of commuting is lessened by moving to the new home location. If you are claiming this reason for the tax deduction be prepared to substantiate the claim in writing.

Congratulations, you have passed the tax law moving deduction time and distance tests and you can take deductions of your moving expenses from your tax return upon the completion of one final test.

*LENGTH IN NEW JOB*

The final test simply states that you must work at least 39 weeks within the first year of accepting your new job at the new location or 78 weeks within the first two years in order to qualify for deductions.

After reviewing and passing these three tests you will finally be certain of your eligibility for deducting your moving expenses from your tax return. These tests apply to anyone moving into or within the United States. Tax deductions for persons moving outside of the United States must meet a different set of criteria.