- Your move must occur near to the date you start a job.
- Your move must meet the distance test.
- Your move must meet the time test.
To start your planning off right, you need to have a full and complete understanding of the three above points.
New Employment Start Date
The first requirement necessary to receive moving tax deductions is to report to your job near the date you move. Generally, moving expenses incurred up to a year before you start a job qualify. Be sure to keep receipts of all moving expenses with your files so they are easily found come tax season.
There are some exceptions to the expenses you can list, including losses from canceling memberships and return trips to your original address. For a full list of non-deductible expenses related to moving tax deductions, visit the IRS website.
The Distance Test
To determine whether you meet the distance test requirement, you will need to compare distances between your old home, your old job and your new job. Grab a pad of paper and write down the distance in miles from your old home to your old job. Then, write down the distance in miles from your old home to your new job. If the second number you write down is greater than 50 miles, you have passed the distance test.
The Time Test
In order to pass the time test, you must work full-time for a minimum of 39 weeks during the 12 months directly following your move. Self-employed persons must work a minimum of 78 weeks during the first 24 months. There are a number of exceptions to this rule, so be sure to speak with your tax consultant about your qualification for moving tax deductions. Some of these exceptions include death or disabilities that occur after a move. Military personnel do not have to meet the time test in order to qualify for moving tax deductions.
Find the forms you need at the IRS website when applying for moving tax deductions.
Planning for potential moving tax deductions is only one part of your greater moving plan. Be sure you start making all the other arrangements for your long distance move early. Find out how American Moving & Storage can we help you. Contact us at 912-401-0362 to learn more about our professional packing, crating, moving, and storage services or get a free quote here .