If you were recently forced to move due to career-related reasons, there’s a chance that you’re eligible to deduct your move expenses from your taxes. One of the lesser-known facts within the moving industry, for a move to qualify as tax-deductible it must first satisfy two conditions.
The distance test
The first condition is the distance test. In order to qualify for a tax deduction, you must have moved a distance of over 50 miles. It doesn’t matter whether you drive 50 miles down the road or 2,000 miles across the country, so long as it’s a distance beyond 50 miles.
The time test
If your move satisfies the distance requirement, the time test is the only condition left. If you are moving as an employee, you must work full-time for at least 39 weeks during the first 12 months in your new home. If you are self-employed, you must work 39 weeks out of your first 12 months, and 78 weeks during your first 24 months to qualify.
Exceptions to the distance and time tests
If you think your move might qualify, check out the IRS’s publication regarding deducting move expenses.