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Deducting Moving Expenses

posted Aug 18, 2014, 9:54 PM by Zaher Fallahi   [ updated Oct 24, 2014, 10:36 PM ]

If you move because of your job, you may be able to deduct the cost of the move on your tax return. You may be able to deduct your costs if you move to start a new job or to work at the same job in a new location. The IRS offers the following tips about moving expenses and your tax return.

In order to deduct moving expenses, your move must meet three requirements:

1. The move must closely relate to the start of work.  Generally, you can consider moving expenses within one year of the date you start work at a new job location. Additional rules apply to this requirement.

2. Your move must meet the distance test.  Your new main job location must be at least 50 miles farther from your old home than your previous job location. For example, if your old job was three miles from your old home, your new job must be at least 53 miles from your old home.

3. You must meet the time test.  After the move, you must work full-time at your new job for at least 39 weeks the first year. If you’re self-employed, you must meet this test and work full-time for a total of at least 78 weeks during the first two years at the new job site. If your income tax return is due before you’ve met this test, you can still deduct moving expenses if you expect to meet it.

Zaher Fallahi has specialized as Orange County Dental CPA and Doctor’s CPA, and Los Angeles Dental CPA and Doctor’s CPA since 1992. Los Angeles (310) 719-1040 and Orange County ( 714) 546-4272 or e-mail : taxattorney@zfcpa.com

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