Must Be Work-Related

• In order to claim your moving expenses, it must be connected with starting a new job or working at a new location. However, you do not need to have the job lined up before you move as long as you meet the time tests set by the Internal Revenue Service. If you work as an employee, you satisfy the test by working for at least 39 of the first 52 weeks you live in your new location. If you are self-employed, you have to work 39 of the first 52 weeks and 78 of the first 104 weeks you live in your new location. For example, if you move and it takes you five weeks to find a job, as long as you work for the remainder of the year, you meet the time test.
  
  

Distance Test

• Depending on how far you move, the risk that you take with not having a job already lined up is that you do not know with certainty that you meet the distance test. To meet the distance test, your new place of work has to be at least 50 miles farther from your previous residence than your old place of work. For example, if you used to travel 13 miles from your old residence to your old work, your new workplace must be at least 63 miles from your old residence to satisfy the distance test.
  
  

Moving Deduction Valuation

• The IRS allows you to include both the costs of moving your household and your belongings. Your household includes yourself as well as your spouse and dependents. Your moving expenses can include lodging on your trip if it takes more than one day, but you can never include the cost of food. If you take detours on your move, such as if you went out of your way to see family or friends, your deduction can only include the costs associated with the most direct route between your old home and your new home. You also can include costs of shipping your belongings. You must reduce your total deduction by the value of any reimbursement from your employer for the costs of moving.
  
  

Reporting Moving Expenses

• To report your moving expenses, you have to file Form 3903 to break down your expenses for the IRS. After completing Form 3903, use Form 1040 to file your taxes. If you use Form 1040EZ or Form 1040A, you cannot claim your moving expenses. You do not have to itemize your deductions because the moving expenses deduction is any adjustment to income. Report the deduction on Line 26 of your Form 1040 return.