Moving can be expensive.
When it comes to moving, the list of expenses can seem endless. Luckily, some of your moving expenses may qualify as tax deductible. You can deduct moving expenses for 2 reasons: you are starting a new job that requires relocation or you are transferring within your job to a new location. However, even if you fit into these categories, there are still certain requirements that need to be met. Our movers in Florida have come up with the following guide to help you to better understand those requirements.
Distance Test Requirements
Your new job must be at least 50 miles farther from your old home than your previous job was. For example, if your old commute was 10 miles, then your new job must be at least 60 miles away from your old home in order to qualify. Keep in mind that this is determined by the shortest route that can be taken.
Time test Requirements
In the 12 months after your move, you must work for the company full-time for at least 39 weeks. If you are moving towards the end of the year, it doesn’t automatically disqualify you. The IRS will allow the deduction to be made if you expect to work full time for at least 39 weeks, but if you don’t meet the requirement you will need to amend your tax return. Keep in mind that exceptions to the time test requirements may apply in the following cases:
- Your transfer was a result of your company’s request.
- You were laid off for any reason besides willful misconduct.
- You’re in the armed forces and your move is due to a permanent change of station.
- The form has been filed due to someone’s death.
- Your job ended because you became disabled.
- You meet the requirements for survivors or retirees living outside of the U.S.