You may be able to write off your moving expenses whether you’re using business movers, home movers, or moving yourself, if your relocation is due to a change of business relocation or job, or because you’ve started a new business or job. To qualify, you must meet these requirements:
THE “IRS TIME TEST”
THE “IRS DISTANCE TEST”
In the distance test, your new place of employment must be at least 50 miles farther away from your old residence then your old place of employment was from that residence. For instance, if you’re previous job was 15 miles from your residence; your new job must be at least 65 miles further from the previous residence to qualify. If there was no previous employment, your new job must be at least 50 miles from your old residence.
In the “time test” you must be employed and working full time for 39 weeks during the first 12 months that you arrive in the general vicinity of your new place of employment. If self employed, working full time at least 39 weeks during the first 12 months (1 year) and a total of at least 78 weeks during the first 2 years (24 months) after you arrive in the general vicinity of your new work place.
There are some exceptions like in cases of disability, involuntary separation, death or other cases. If you are in the armed forces and your relocation due to a change of duty station, the distance and time test do not have to be fulfilled. Also note, you are not allowed to deduct moving expenses that were reimbursed by your place of employment.
Moving expenses can be figured on this Form 3903 (www.irs.gov/pub/irs-pdf/f3903.pdf).
For more information on tax deductible moving expenses, you can view Publication 521, Moving Expenses (http://www.irs.gov/publications/p521/index.html).