Daisy's Notes

Tuesday, January 17, 2006

Moving Expenses Tax Deduction

If you moved to start a new job, or to seek work in a new city, you may be able to deduct the cost of your moving expenses from your income.
Qualifying expenses include costs for packing and shipping your household goods and personal property, storage of your goods for up to 30 days, and costs for travel and lodging. Meals are not deductible as a moving expense.
You do not need to itemize your deductions in order to claim the expenses.
You can deduct the cost of moving expenses that exceed any reimbursements from your employer.

You must meet the qualifications in order to claim this tax deduction. First, your move must be because you started a new job. Second, Your move has to make your commute shorter than it was prior to your move. Third, you must meet the distance and time tests.
1. Your new job is located at least 50 miles farther from your old home than the distance between your old home and your old job.
2. You must work full-time for at least 39 weeks during the 12 months following your move. If you are self-employed, you must work at least 78 weeks in the 24 months after you move.

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