Moving expenses may be deductible if you recently changed jobs or business locations or if you started a new job or business. With the exception of meals you may qualify to deduct reasonable moving expenses if you satisfy two tests.
Under the first test the distance test you may qualify if your new workplace is at least 50 miles farther from your old home than your old job location was from your old home. If you had no previous workplace then your new job location must be at least 50 miles from your old home.
Under the second test the time test you must work full-time for at least 39 weeks during the first 12 months immediately following your arrival in the general area of your new job location. If you are self-employed you must work full-time for at least 39 weeks during the first 12 months and for a total of 78 weeks during the first 24 months immediately following your arrival in the general area of your new work location. There are no exceptions to the time test in case of death disability or involuntary separation.
Armed forces members who moved due to a military order and permanent change of station do not have to satisfy the distance or time tests.
Moving expenses are figured on Form 3903 Moving Expenses and deducted as an adjustment to income on Form 1040. You cannot deduct any moving expenses covered by reimbursements from your employer that are excluded from income.
For more information on deductible and nondeductible moving expenses give the knowledgeable staff at Lindemeyer CPA a call.