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Distance Test: Your new main workplace must be at least 50 miles further from your former home than your old main job location was from your former home. Ex. if your old workplace was 3 miles from your former residence, your new work place must be at least 53 miles from your former home. If you did not have a workplace, your new workplace must be at least 50 miles from your former home.
Time Test: Employees must work full time in the general area of your new workplace for at least 39 weeks during the 12 months right after your move. If you are self employed, you must work at least 39 weeks during the first 12 months and a total of at least 78 weeks during the 24 months right after your move.
What if you do not meet the time test before the tax return is due? If you expect to meet the time test, you can deduct your moving expecses in the year you move. If you claim the deduction and it turns out that you didnt meet the time test that the next year, you must either claim an equal amount of income or amend the prior years return.
Deductible expenses: The actual cost of transportation or hauling from your former residence to your new one; the cost of packing, crating and unpacking; storage in transit (each limited to 30 days). The cost of shipping your automobiles, boats, pets (dogs, cats, tropical fish, etc). Moving related costs accociated with connecting and disconnecting utilities. The cost of moving your personal belongings from a place other than your old residence, such as a summer home or relatives home but not in excess of what it would have cost to move them from your former home. Also the family trip to the new residence is deductible which includes lodging but not meals.
For details go to: http://www.irs.gov, see federal tax form 3903, and read publication 521.
This information is not intented as tax advice or to include all aspects of federal tax law. Please keep in mind that myself and All Jersey Moving & Storage are movers and not tax professionals. Please seek professional advice.