Moving for a Job? The IRS Might Owe You Some $
Half the reason we get so wound up around tax season is because we’re left scrambling to determine if any life events
Half the reason we get so wound up around tax season is because we’re left scrambling to determine if any life events from the previous year can be written off, and if so, track down the documents to verify those deductions. If you have moved this year, that’s one that counts – maybe.
Only job-related moves count, and even then, you must pass certain requirements. The overarching two-part rule is the “50-Mile, 39-Week Test,” meaning:
- The distance between your old home and new job has to be at least 50 miles apart.
- You must be employed at your new job for at least 39 weeks during the 12 months following the move.
If you pass those two criteria, you’ve cleared the first bar, and in that case, we highly recommend checking out this SmartMoney article, “The Moving Van vs. The Tax Man,” which breaks down the things you can deduct (gas, packing and shipping costs) and those you cannot (meals during the trip, house-hunting expenses). Moving is filled with little expenses that quickly add up, so it’s best to be mindful of the areas where you can get some of those expenses back.