"How Do I Know If I Can Deduct My Moving Expenses?"

Relocating for your job can be exciting—yet there are many expenses that come with moving abroad. Thankfully, you can deduct your moving expenses if you meet all 3 requirements below:

Your Move Closely Relates to the Start of Work

One of the requirements to receive a deductible on your moving expenses is that your move is closely related—both in time and in place—to the start of work at your new location. You are able to ask for a tax deductible for the moving expenses incurred within one year from the date you first reported to your new job.

Your New Job Is 50 Miles Further from Home Than Your Old Job

The IRS requires that your new job must be a minimum of 50 miles further from your old home than your old job was from your old home. If you worked remotely or did not have a job, your new job must be at least 50 miles from your old home. This rule is intended to disqualify people who simply change homes in the same town and want to deduct the moving expenses.

The idea is that if your new job is 50 miles further than your old job was, then relocation is actually necessary.

You've Worked for 39 Weeks of the Year Since You Moved

In order for you to qualify for a deductible, you must work full-time for 39 weeks in the 12-month period beginning on your move date. The weeks don't have to be consecutive or even be for the same employer. If you are self-employed, you must work full-time for a total of 78 weeks during the first 2 years of your relocation. "Full-time" here doesn't necessarily mean 40 hours a week in either case; the IRS defers to whatever is the "norm" for your industry. There are exceptions for the time test in the event of death, disability, and other reasons.

Keep in mind that you can’t deduct any expenses that have been reimbursed from your employer. You can file for moving expenses on Form 3903 and deduct as an adjusted income on Form 1040.

AQMS is here to give you advice on how to make your moving experience an easy one. If you need help relocating your items internationally, call (818) 960-1988 to get a free moving quote. Our international licensed movers can help your relocation be stress free!