Start For Free

Fast, Secure, and Always Accurate!

Back to List

Category: Finding Deductions

Who can deduct Moving Expenses?

If you moved due to a change in your job or business because you started a new job, you may be able to deduct your moving expenses. To qualify for the moving expense deduction, you must satisfy three tests.

Under the first test, your move must be closely related to the start of work. In most cases, you can consider moving expenses incurred within 1 year from the date you first reported work at the new location as closely related in time to the start of work. It is not necessary that you arrange to work before moving to a new location, as long as you actually go to work in that location.

Next, the "distance test", your new job must be at least 50 miles farther from your old home than your old job location was from your old home. If you had no previous workplace, your new job must be at least 50 miles from your old home, or if you are a member of the armed forces and your move was due to a permanent change of station you also may qualify.

The third test is the "time test". If you are an employee, you must work full-time for at least 39 weeks during the 12 months right after starting your new job. If you are self-employed, 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 starting your new job. There are exceptions to the time test in case of death, disability and involuntary separation, among other things. For more information on qualifying to deduct moving expenses please refer to Publication 521, Moving Expenses.

Moving expenses are figured on Form 3903 (PDF) and deducted as an adjustment to income on Form 1040 (PDF). You cannot deduct any moving expenses that were reimbursed by your employer.

For additional information, refer to the Form 3903 (PDF) Instructions and Publication 521, Moving Expenses.

You can access Form 3903 within our program by going to Deductions > Adjustments > Moving Expenses (Form 3903)