Moving Expenses

Moving Expenses

If you moved because of a change i= n your job location or because you started a new job, you may be able to deduct yo= ur 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 tes= t if your new main job location is at least 50 miles further from your former home than your old main job location. 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 following rules relate to = the time test. If you are an employee, you must work full-time for at l= east 39 weeks during the 12 months right after you move. If you are self-employe= d, 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 2007 tax return is due, you = may still deduct your moving expenses on your 2007 return as long as you expect to meet the requirements.

Ultimately, if you do not meet the test requirements, you must either: =

Amend your 2007 return; or <= /span>

Report the amount you deducte= d on your 2007 return as income on your 2008 return, if you had expected to meet the 39-week test.

If you are married and are filing a joint re= turn, only one spouse must meet the time test. You cannot, however, add the weeks your spo= use 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 o= n active duty and your move was due to a permanent change of station, or <= /o:p>

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 back 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.