If you want to get Uncle Sam to pay for part of your move, you need to make sure that the relocation is related to work. There are a couple of time and distance requirements you will need to meet. However, as long as you meet the requirements, you can actually write off a lot of your relocation costs and it doesn’t matter if you have the same job or a new job!
When you include relocation costs on your taxes, you will need to use the long Form 1040, but don’t worry about itemizing any other deductions. In fact, you’ll need to make sure to fill out Form 3903 but no Schedule A or any of the other complicated forms. And remember, you don’t have to make a certain amount of money to include your moving cots on your taxes.
The biggest moving tax-break obstacle is the distance requirement. This requirement is actually in place to make sure that your move is not simply to make your commute any easier. Your job must be at least 50 miles farther away from your previous residence than your last job. The IRS says to figure the distance using the shortest, most common route. And remember, the distance requirement only applies to your old home, not your new residence.
Of course, it is important to keep in mind that the distance requirement is not the only factor when writing off your relocation costs. In future posts, we will discuss those factors in more detail.
Lance Grooms
