If you’re an employee, you must work full-time for at least 39 weeks during the first 12 months after your move. If Jack had not worked prior to the Boston move, he still would have met the distance test because his new job is at least 50 miles from his old home. Old home to new job location = 105 miles Old home to old job location = 52 milesĮxample(s): Since the new job location is 53 miles farther from his old home than his old job was, the distance test has been met. He moves 90 miles to Boston because he’s tired of commuting so far every day. Tip: If you are in the armed forces and you moved because of a permanent change of station, you do not have to meet the distance test.Įxample(s): Jack lives in Chicopee, Massachusetts, and is employed in Worcester. Tip: The location of your new home is not a factor in the distance test. If your new job is your first full-time job, or your first full-time job after a substantial period of part-time work or unemployment, the distance test is met if your new job is at least 50 miles from your former home.
So, for example, if the distance between your former home and your old job was 100 miles, your new job must be at least 150 miles from your former home to meet the distance test.
To meet the distance test, your new job must be at least 50 miles farther from your former home than your old job was from your former home. Your move must meet the distance and time tests The distance test Even if your new home results in a longer commute than your old home would have, your move can still qualify if you can show that either (1) a condition of your employment requires you to live at your new home, or (2) you will spend less time or money commuting from your new home to your new job.Ĭaution: In addition to the above, you must meet the distance test, described below. In other words, your new home will not be considered closely related to your new job location if it results in a commute longer than that which you would have had from your old home. Generally, the distance from your new home to your new job location should not be more than the distance from your former home to your new job location. Your new home must be closely related in place to your new job location For example, extra time may be allowed for a child to complete high school or for a spouse to complete an employment contract. Expenses incurred after a year are deductible only if you can show that circumstances existed that prevented the move within that time. Generally, this means that you can deduct moving expenses you incur up to one year after the date you first report to work at your new job. Expenses must be job related Your expenses must be closely related in time to the start of work at your new job location Instead, it is an expense that you deduct when figuring your adjusted gross income (AGI) on your federal income tax return. The moving expense deduction is not an itemized deduction. You may qualify for the deduction whether you’re an employee or self-employed, but the expenses must be related to your beginning work at a new job location. If you move to a new home for job-related reasons (either new employment or a transfer), you may be able to deduct the unreimbursed costs of moving you and your family if you meet the distance and time requirements set by the IRS.
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