If you move out, you can deduct the cost of the move on your federal tax return next year. This can be applied if you move to start a new job or at the same job but in a new location. In order to deduct your moving expenses, it must meet three requirements:
- Your move must be directly related to the start of a job.
In general, moving expenses can be considered within one year of the date you started working at the new place of employment. Additional rules apply to this requirement.
- Your move must meet the distance test.
Your new main job location must be at least 50 miles farther from your old home than your previous workplace. For example, let’s say your old job was three miles from your old home, your new job must be at least 53 miles from your old home.
- You must meet the test of time.
You must work full time in your new job for at least 39 weeks the first year of the move. If you are self-employed, you must also comply with this test. You must also work full time for a total of at least 78 weeks during the first two years in the new workplace. If your tax return expires before you have completed this test, you can deduct the moving expenses, if you expect to meet the requirement.