August 23, 2007

Moving Expenses

If you recently moved to another city for a new job or because your old job is now at a new location you may be eligible for a tax break. If you can satisfy the distance and time tests then job-related moving expenses that you incur may be tax deductible. You will meet the distance test if your new workplace is at least 50 miles further from your former home than your previous workplace was from that home. For example, if your old job was 5 miles from your former home, your new job must be at least 55 miles from that home. The time test requires you work full-time for at least 39 weeks during the 12 months immediately after your move. If you are self-employed, the time test requires you to 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 after your move.