Moving Expenses for Tax Deductions
Tips and Instructions!
Moving expenses can be a significant financial burden, and the good news is that, under certain circumstances, they may be deductible on your tax return. However, the key phrase here is "under certain circumstances." Here's a detailed breakdown of what you need to know:
Who can deduct moving expenses:
Military members: Moving expenses are generally deductible for active-duty Armed Forces members, regardless of the reason for the move.
Full-time employees: Moving expenses can be deducted if the move is closely related to a new job. To qualify, you must meet the following two tests:
Distance test: Your new workplace must be at least 50 miles farther from your old home than your old workplace was from your old home.
Time test: You must work full-time (at least 78 weeks) for the same employer or self-employed in the new location for at least 39 weeks in the first 12 months after the move.
Tip!: Read all the fields before answering.