Moving Expenses and the IRS

image courtesy of forbes.com

Tax season is upon us again!

No one at Intelligent Labor and Moving is a tax professional, but, being movers, we do know that the IRS lets you deduct some moving expenses.

According to the IRS, if you moved this year "due to a change in your job or business location, or because you started a new job or business, you may be able to deduct your reasonable moving expenses but not any expenses for meals." There are two tests you must use to determine if qualify for the deduction:

1. Distance
Is your new job 50 miles or more farther away from your old home than your old job was from your old home? If you've never worked before, is your new job 50 miles or more away from your old home?

2. Time
If you're an employee you must work at least 39 weeks at full-time for the first year following your arrival in the general area of your relocation. If you're self-employed the same applies, as well as needing to work at least 78 during the first 24 months in the general area of your new location.

There are exceptions to each rule. If you're move is due to military service you do not need to meet either requirement. The time requirement can be waived due to death, disability, involuntary separation among other things. If your employer paid for or reimbursed you for your move you do not qualify for this tax deduction.




The IRS provides a more comprehensive guide to moving tax deductions here. Its definitely worth a read if you moved in 2011. And, for a tax guideline its not so bad to read! If you still have questions after reading over the guide it is best to contact a tax professional.

Happy filing!