If you have to move due to a change in your job or business location, or because you start a new job or business, can you deduct the cost from your taxes? It depends.
You can deduct your moving expenses only if you satisfy two tests:
To deduct your moving expenses, your new workplace must be at least 50 miles farther from your old home than your old job location was from your old home. For example, if your old main job location was three miles from your former home, your new main job location must be at least 53 miles from your former home. If you had no previous workplace, your new job location must be at least 50 miles from your old home. If you go back to full-time work after a substantial period of part-time work or unemployment, your place of work also must be at least 50 miles from your former home.
If you are an employee, you must work full-time for at least 39 weeks during the first 12 months immediately following your arrival in the general area of your new job location. If you are self-employed, you must work full time for at least 39 weeks during the first 12 months and for a total of at least 78 weeks during the first 24 months immediately following your arrival in the general area of your new work location.
There are exceptions to these rules in case of death, disability, and involuntary separation, among other things.
If you qualify for the moving expense deduction, you can deduct all your reasonable moving expenses including:
You cannot deduct any of the following expenses:
Moving expenses are figured on IRS Form 3903 , Moving Expenses, and deducted as an adjustment to income on Form 1040. This makes them a particularly valuable deduction because you don't have to itemize your deductions to claim them.
For more information on deductible and nondeductible moving expenses, refer to Publication 521, Moving Expenses.