Posted on 08/04/22

What Are The Requirements For Moving Expenses And Tax Deductions

What Are The Requirements For Moving Expenses And Tax Deductions

Although moving is not a pleasant experience, it can be necessary for many reasons. Moving is usually expensive. However, there are certain cases where you can get some relief from the expense. You can deduct your moving expenses from your income tax return regardless of whether you hire or move. These criteria are:

* Relating to the beginning of work
* Distance
* Time Test

These guidelines do not allow you to deduct tax on moving expenses. However, there are certain requirements that you must meet.

The start of work

If you're moving to start a new job, you might be eligible to deduct the expenses from your tax return. This means you must move within 12 months after starting a new job. Pre-arrangement is not required as long as the move takes place within 12 months. If you have a reason to be able to show that you were unable to move within the 12-month time frame, such as children at school or other qualified reasons, exceptions to this rule may be granted.


For you to be eligible for the moving expense deductions under the distance test rule, the distance between your home and your job must exceed 50 miles. This includes the distance between your home and your job. This means you will need to calculate the distance between your home and your job, and then add 50 miles.

Time Test

To be eligible for the time rule's moving expense deductions, you must have worked at least 39 weeks in your new place. This rule is the most straightforward to follow. The 39 weeks don't have to be consecutive, as long as they occur within 12 months. It is also not necessary that the 39 weeks be spent at the same job. For self-employed people, the requirements are slightly different. You must work the first 39 weeks and then the next 39 weeks for the next 24 months. This totals 78 weeks. This work does not have to be in the same place, but it is not necessary that they be the same job.

Your accountant can help you determine your qualifications for deductions on moving expenses. You should keep all receipts related to your move in case you need them for verification. If you intend to deduct these expenses from your tax bill, this is essential.