To pass the distance test your job location must be 50 miles or more from your old home and your new home must be closer than 50 miles to your new job. To pass the time test you must be starting your job within one year of the move, unless there are viable circumstances that you can prove why the move was delayed.
You must also be a full-time employee, who works a minimum of 39 weeks for the next year at your new location, although these weeks do not have to be consecutive. The IRS also states, you do not have to have a job before the move but you must begin working within one year of the move, in a location that is less than 50 miles from your new home, to receive any tax deductions. If you are unemployed and find a job more than 50 miles from your old home, your relocation expenses for moving are deductible if you move within the next 12 months of starting your new job.You are moving your business or starting a new business. These requirements are similar to the criteria outlined for relocating for a new job. If you open a new business or choose to relocate your business 50 miles away from your old home and within 50 miles of your new home, the move can be tax deductible. You must work at least 39 weeks during the first 12 months after your move or a total of at least 78 weeks during the first 24 months after your move. You’re permanently retiring after working overseas and are now returning to the U.S. If you were working or living overseas and are now permanently retired, you may be able to deduct your moving expenses, if moving to a new home in the United States You are a survivor of someone who was working overseas and is now deceased. If you, at one point, lived overseas with a spouse, dependent or someone you were a dependent of and chose to move back to the U.S after their death, those moving expenses are deductible. The move must begin within six months of the death and must be from the decedent’s home. You are in the Armed Forces. If you‘re a current active-duty member of the Armed Forces, you can deduct moving expenses not reimbursed by the government regardless of the distance and time test. As stated by the IRS, this can include: a move from your home to the first post of active duty, a move from one permanent post of duty to another, a move within 12 months from your last post of duty to your home or to a closer location in the U.S. These deductions are also valid if incurred by spouses or dependents.
For more information on military moves, international moves, or interstate moves head to www.danielsmoving.com.