- The time of the move must closely relate to the start of work. Generally, you may consider moving expenses within one year of the date you start work at the new job location. However, additional rules may apply to this requirement.
- Distance test – Your new main job location must be at least 50 miles further from your old home than your previous job location. For example, if your old job was 5 miles from your old home, your new job must be at least 55 miles from your old home.
- Timing test – You must work full-time at your new job for at least 39 weeks in the first year after the move. For self-employed individuals, you must work full-time for a total of at least 78 weeks during the first two years at the new location.
What may be considered deductible:
- Moving household goods and personal effects. This includes packing, crating and shipping. You may be able to include the cost of storing and insuring the items while in transit.
- Traveling expenses moving from your old home to your new home (this includes lodging, but not meals).
As for the travel expense, these should be based on the shortest, most direct route available by conventional transportation. If you make side trips or stop over in a certain location, the additional expenses for your side trips or stopovers are not deductible.
Any expenses that are reimbursed cannot be deducted.
Don’t forget to notify the IRS of your move by completing Form 8822 (Change of Address)
For additional information on moving expenses, see IRS Publication 521.