How Do You Use Moving Expenses As A Tax Deduction?
The IRS allows individuals who meet certain tests to take a tax deduction for some moving expenses incurred in the process of moving from one home to another in order to relocate near a new primary workplace. Taxpayers who wish to deduct moving expenses must pass a “distance test” and a “time test” to be eligible for the deduction, which is taken on IRS Form 3903. Maintain detailed financial records of your moving expenses. Include records of the cost of traveling from your old home to your new home, lodging along the way and moving your household goods and personal effects to your new home. Use the Form 3903 eligibility tests to assess if you are eligible for the deduction. Some members of the armed services and employees who are laid off or terminated for reasons other than willful misconduct may waive the time test. Take the distance test on IRS Form 3903. The distance from your old home to your new workplace must be more than 50 miles greater than the distance from your old home to
