|
Moving Expense Qualifications
| Fact Gathering Summary (see
organizers below) |
Answer |
| How many times did you move during the year? |
|
| Did you work at the new location? |
|
| How Many Miles was the move? |
|
| How many weeks did you work at the new
location? |
|
| Was the work as an employee or self-employed? |
|
| Was this move because you are in the armed
forces? |
|
| IF the employment at the new location was
ended, was it ended because of a transfer for your
employer's benefit, or a layoff? |
|
If you moved because of a change in your job location or
because you started a new job, you may be able to deduct your
moving expenses if your move is closely related to the start of
work. To qualify for the moving expense deduction, you must meet
the distance and the time tests.
Your move will meet the distance test if your new main job
location is at least 50 miles farther from your former home than
your old main job location was. Use the shortest distance of the
most commonly traveled routes between these points. To determine
this, first figure the distance between your former residence and
your new job and then subtract the distance between your former
residence and your old job. If the result is 50 miles or more, you
have met the distance test. For example, if the distance from your
former residence to your new job is 70 miles and the distance from
your former residence to your old job is 5 miles, you will meet
the distance test. If you are a member of the armed forces and
your move was due to a permanent change of station, you do not
have to meet the distance test.
The second test concerns time. If you are an employee, you must
work full–time for at least 39 weeks during the 12 months right
after you move. 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 after you
move. If you haven't met the time test by the date your 2001 tax
return is due, you may still deduct your moving expenses on your
2001 return as long as you expect to meet the time test. Then, if
you don't meet the test, you must either: Amend your 2001 return;
or Report the amount you deducted on your 2001 return as income on
your 2002 return if you had expected to meet the 39–week test,
or on your 2003 return if you had expected to meet the 78–week
test.
If you are married and are filing a joint return, only one
spouse must meet the time test. You cannot, however, add the weeks
your spouse worked to those you worked to satisfy the test. In
general, you do not have to meet the time test if:
- You are in the armed forces on active duty and your move was
due to a permanent change of station, or
- Your job at the new location ends because of death,
disability, a transfer for your employer's benefit, or a
layoff other than for willful misconduct; or
- You moved from outside of the United States to the United
States because you retired, or you are the surviving spouse or
dependent of a person who died while living and working
outside the United States, and your move begins within 6
months of that person's death.
If you meet the requirements, you can deduct the reasonable
expenses of moving your household goods and personal effects
to your new home. You can also deduct the expenses of
traveling to your new home, including your lodging expenses.
You cannot, however, deduct meals.
Moving expenses are figured on Form
3903 (PDF) and deducted as an adjustment to income on Form
1040 (PDF). You cannot deduct any moving expenses that
were reimbursed by your employer.
For additional information, refer to the Form
3903 Instructions (PDF) and Publication
521 (PDF), Moving Expenses.
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