Moving Expense Deduction Related to Starting a New Job
Moving Expense Deduction Related to Starting a New Job
AUGUST 2011
IRS provides useful tips regarding deductions associated with an employment-related household move [IRS Summertime Tax Tip 2011-16]: IRS has published a list of tax tips regarding possible deductions for moving expenses related to starting a new job or relocating to a new job location. Among the tips associated with deductions are the following: a move must be closely related to the start of work (within one year of the start of work); a move will meet the distance test if the new main job location is at least 50 miles farther from the former home than the previous job location was; the taxpayer must work full time for at least 39 weeks during the first 12 months after arriving in the general area of the new job location, or at least 78 weeks during the first 24 months if the taxpayer is self-employed; deductions can be made for lodging expenses for the taxpayer and household members while moving from the former home to the new home, as well as for transportation expenses, including airfare, vehicle mileage, parking fees and tolls the taxpayer pays to move; the cost of packing, crating and transporting household goods and personal property can be deducted; and it is possible to deduct the costs of connecting or disconnecting utilities. A taxpayer can deduct only those expenses that are reasonable for the circumstances of his move.
To calculate the amount of a moving expense deduction, Form 3903, Moving Expenses, should be used. Additional information is contained in Summertime Tax Tip 2011-16 which can be found on the IRS website at http://www.irs.gov/newsroom/article/0,,id=243622,00.html