Tax Preparation online help - Tax Deductible Moving Expenses
This section of Tax Preparation Online help deals with tax deductible moving expenses. If you are an employee or a self employed person and you make a job related move and are not reimbursed by your employer, then you may be eligible for tax deductible moving expenses. Furthermore, there is no dollar limit to how you can deduct for moving expenses that qualify for IRS tax deductible moving expenses.
What moving expenses are tax deductible?
Under certain circumstances, moving expenses you incur in connection with changing the location of your employment are tax deductible. The moving expenses can be tax deductible if the distance between your new job and your residence is at least 50 miles more than the distance between your old job and your residence.
In addition, if you are an employee, you must work full time during at least 39 weeks of the 12-month period after relocating. If you are self employed, the standard is stiffer. You must work full time at least 78 weeks during the 24-month period after relocating. In addition, you must work full time for at least 39 weeks during the immediate 12-month period after relocating.
Tax deductible Moving expenses because of you are laid off
If you are fired or laid off, involuntarily lose your job (for other than willful misconduct), or are required to move again by your employer before the 39 weeks are up (or 78 weeks, if applicable), you can still tax deduct your moving expenses. You may also be exempted from the 39-week or 78-week requirement because of death or disability.
Joint return for tax deductible moving expenses purposes
If you file a joint return, the time test may be met by either spouse. However, weeks worked by both husband and wife cannot be added together to meet the time test.