When you accept a new job out of your local area, moving expenses might be deductible. In order to qualify, you need to move a minimum of fifty (50) miles from the location of your old job. You also must be employed full-time for at least 39 weeks during the first 12 months following the move and 78 weeks in 24 months. If you anticipate fulfilling this commitment, you can deduct the expense at the time of the move. If you moved in December of 2008, you would be able to take the expenses on your 2008 return even though you could not fulfill the requirements in 2008.

Members of the military do not have to fulfill these requirements if the move is a permanent change of station.

Things that are deductible are the cost of moving your household goods, cars, and personal effects as well as yourself and your family. Meals eaten during the move are not deductible nor are any part of the purchase price of your new home. You also cannot take a deduction for anything for which you are reimbursed by your new employer.

If you own a business, the cost of moving the business is 100% deductible on the Schedule C.

 
This information is provided in an effort to help you gather and organize the information necessary to file your individual or small business income tax return. While these financial tools are not a substitute for financial advice from a qualified professional, they can be used as a starting point in your decision making process.