Ayla PR Representative at Moving Made Smooth, Inc.
If you are relocating due to starting a job in a new location, which can be a new job, an old job that has moved you to a new location/branch, or a move due to your company relocating. The IRS form needed to deduct moving expenses is Form 3903.
Who Qualifies For These Deductions?
There are three main qualifications that allow you to file for these deductions.
1. Your move must be closely related in time and distance to the start of work in the new location.
2. Your move meets the requirements of the Distance Test.
3. Your move also meets the requirements of the Time Test.
A move that is closely related in time is usually defined as occurring within a year of starting work in the new location. Exceptions are made if you can prove that reasonable circumstances prevented you from moving within the year time frame. You can look over exceptions in greater detail on the IRS website linked below. A general guide to determining if the distance is closely related is if your new home is closer to your place of work than your old home.
A move that qualifies under the Distance Test means the distance between your new job location and your old home is greater by 50 miles or more from the distance between your old home and your old job location. To clarify, this means if your old home is 5 miles from your old work location, then your new work location must be at least 55 miles from your old home. This requirement does not take into account the distance to your new home. Members of the Armed Forces do not have to meet this requirement. For more details about this requirement see the full IRS document linked below.
Qualifying a move under the Time Test means that you meet the requirements outlined for an employee or self-employed person. An employee must have worked or will work full-time for 39 weeks within the first 12 months of moving to your new location. A self-employed person must have worked or will work full-time for 78 weeks in the first 2 years and have worked or will work full-time for 39 weeks within the first year of living at the new location. If you have not yet completed these requirements before filing your taxes, but will do so within the new year, you can still file for this deduction. There are more extensive rules listed on the IRS website linked below.
A retiree or survivor of a person who moved into the United States may be able to deduct some of the costs of moving from another country. Follow this link to the IRS for more information about this exception (http://www.irs.gov/pub/irs- pdf/p521.pdf#en_US_2014_publink1000203483).
What Moving Expenses Can I Deduct?
For more information check out this link to the IRS website: