CAN YOU DEDUCT MOVING EXPENSES FOR TAX PURPOSES

By January 9, 2018Moving Tips

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CAN YOU DEDUCT MOVING EXPENSES FOR TAX PURPOSES

If you moved last year for your job or your business relocated you may be able to deduct your associated moving expenses.  Unfortunately meals are not included in those expenses but there are several items you can deduct.  There are three requirements you must meet in order to deduct those expenses:

  1. Your move relates to the start of your work
  2. You meet the distance test
  3. You meet the time test

Move Associated to Start of Work – Time and place must be closely related to your move in regards to the start of your new job and its new location.  Moving expenses that you have incurred within one year from the date you first reported to work would be closely related to the time and start of your job and would be deductible.

Distance Test – The new job location must be at minimum 50 miles further from your old home

Time Test – For employees, you must work full-time for a minimum of 39 weeks during the first 12 months immediately following your arrival to your new job location.  For self employed individuals, you must work full time for 39 weeks during the first 12 months and for a total of 78 weeks during the first 24 months immediately following your arrival to your new job location.  Exceptions to the time test:

  1.  Death
  2. Disability
  3. Involuntary Separation

Members of the Armed Forces 

If you are an active member of the Armed Forces and your move was associated with your military orders and permanent char of station you do not have to meet the distance and time tests

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