If you move because of a change in the location of your job or business, moving expenses may be tax deductible. Moving expenses may also be deductible if you move because of a new job or business.

In order to deduct moving expenses from your taxes, you must qualify under both the “distance test” and the “time test”:

• If you had a previous job location, the new job location must be at least 50 miles further from your old home than your previous job location was from your old home.
• If you did not have a previous job location, your new job must be located at least 50 miles from your old home.
• If an employee, you must work full-time at a job in the same general vicinity for a total of at least 39 weeks during the first 12 months after arriving in the area.
• If self-employed, you must work full-time in the same general commuting area for at least 39 weeks of the first 12 months--and for a total of at least 78 weeks during the first 24 months--after arriving in the vicinity of your new work location.

There are various exceptions to the time test. These include death, disability, and involuntary separation from your job. Under certain circumstances, moving expenses may be deducted if you are a retiree or survivor, even if you are not starting work at your new location. If you are a member of the armed forces and moved because of a permanent change of station, moving expenses can be deducted from your taxes without meeting either the distance test or the time test.

You cannot deduct any moving expenses that were reimbursed by your employer. Moving expenses are computed using IRS Form 3903 and are deducted as an adjustment to your income on Form 1040. Find out more about deducting moving expenses from your taxes in IRS Publication 521 within the Web site of the Internal Revenue Service (IRS).