And if your employer transfers you again or even lays you off, the IRS won’t hold it against you and will waive the 39-week test. This means you are allowed to switch jobs as often as you’d like after the move.
#MOVING EXPENSES TAX DEDUCTION 2016 FULL#
It requires that you be employed full time in the general area of your new job location for at least 39 weeks during the 12 months after you make the move. The second test was designed to prove that you moved for work and not just for a change of scenery. If, on the other hand, your new office is 65 miles from your old home, then your new commute is 55 miles longer and you pass the first test. So if you lived 10 miles from work and your new office is 45 miles from your old home, you lose. That means the distance between your new primary job and your former home must be at least 50 miles greater than your old commute.
Your first challenge will be to pass the 50-mile test. And it doesn’t matter if it’s a new job, the same job or your first job. Keep in mind, the IRS lets you take this deduction only if you are moving because of a job. Pass them and you can cash in fail and you have to eat all the costs of your move. To determine who’s eligible, the IRS has set up two tests. The worst thing is that it’s hard to qualify. The best thing about writing off your moving expenses is that the deduction is taken “above the line,” meaning you don’t have to worry about any of those deduction phase-out rules that can quickly dash your hopes of a big tax refund.
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