Sunday, January 18, 2009

Tax Rules for the Unemployed Part 3: Moving Expenses




As meaningful employment becomes more difficult to find, you may find yourself in a situations where a new job will require you to relocate. If you have to relocate in order to find meaningful employment, you may be able to deduct qualified moving expenses not reimbursed by the new employer. Taxpayers should keep receipts related to all moving expenses in order to substantiate these expenses. You may be able to deduct your moving expenses if


  • your expenses were incurred 1 year from the day you first reported to work.

  • your new job is 50 miles farther from your former home than your old main job location was from your former home.

  • If you are an employee, you must work full time for at least 39 weeks during the first 12 months after you arrive in the area of your new job location (39-week test).

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