It’s common to relocate for a new job. Sometimes people are offered a promotion in another county or state that they can’t pass up, or sometimes they start a new business in a different country. However, moving isn’t cheap, so the IRS allows people to deduct their moving costs under certain conditions. Once you meet those qualifications, you can fill out Form 3903 - Moving Expenses.

Qualified single taxpayers can deduct their job-related moving costs, but if their partner wants to move with them, they won’t be able to enjoy the same tax deductions. On the other hand, married taxpayers can both enjoy the tax deductions, even if only one spouse is relocating for their job.

Before you can fill out Form 3903, you have to make sure that you meet the following criteria:

Do You Qualify for Moving Deductions?

There are two tests you have to pass to qualify for job-related moving expense deductions: the Time Test and the Distance Test. In order for you to qualify for the deductions, you can’t be moving just across town; your new job must be at least 50 more miles away from your old home than your old job location.

In order to deduct your moving expenses, you have to work at your job full-time for a minimum of 39 weeks in the first 12 months after the move. If you’re self-employed, you have to work at least 78 weeks in the first two years of moving. This doesn’t mean that you aren’t allowed to go on vacation. If you have paid or unpaid leave or vacation time, those count towards the 39 or 78 weeks of continuous employment. Same goes for any kind of an involuntary absence, such as a strike, natural disaster, accident, or illness.

If you fit the criteria above, you should be able to deduct travel expenses (the cost of gas and vehicle mileage), the cost of packing and shipping, the cost of a rental truck, short-term storage, and lodging for you and your family. Altogether, this could be a deduction worth thousands of dollars.

If you need more legal advice related to owning a home and buying or selling property, reach out to a real estate attorney for help!