Distance Requirement

• The standard requirement for moving costs to be tax deductible is that the new job must be 50 miles farther away from the taxpayer's former home than the new residence. This is to prevent individuals from filing for tax deductions simply to ease the financial burden of a daily commute. For self-employed individuals, the 50-mile limit applies to the taxpayer's main workplace. For people who work at home, this means that their new homes must be at least 50 miles away from their former homes.
  
  

Time Requirement for Employees

• Once the move has been made, the employee must work at least 39 weeks during the first 12 months that she is in the new location. The work may be done for more than one employer. The 39 weeks also do not need to be consecutive, as long as all 39 weeks fall within the initial 12-calendar-month period after the move.
  
  

Time Requirement for Self-Employed Individuals

• Self-employed individuals must work for 78 weeks during the first 24 months after moving to a new location. At least 39 weeks of work must occur during the first 12 months after the move. The weeks do not need to be consecutive as long as the other requirements are met.
  
  

Military Personnel

• Military personnel who move to report for duty do not need to meet the time and distance requirements for employees or for self-employed individuals. This applies for moves from the military person's home to his first post for active duty and moves between active duty posts. A move from the final active duty post to the military person's home or to another point within the United States must occur within one year after the end of active duty or within the period allowed by the Joint Travel Regulations.
  
  

Expert Insight

• Retirees who were working abroad and who return to the United States after retiring do not need to meet the time and distance tests to deduct their moving expenses. This exemption from the time and distance requirements also applies to survivors of deceased workers working abroad who return to the United States.
  
  

Exceptions

• Moving expenses that are reimbursed by an employer or the government are not tax deductible. If a taxpayer files for a deduction of moving costs but fails to meet the time test, she must file an amended tax return (Form 1040X) to pay the additional tax.