You can deduct moving expenses if:
- Your move is closely related to the start of work at a new job or new job location,
- You meet the distance test, and
- You meet the time test.
Special rules and exceptions apply for members of the Armed Forces, as well as retirees and survivors who move to the United States. See IRS Publication 521 for more information.
Your former home must be at least 50 miles farther from your new workplace than it was from your old workplace. For example, if you lived 5 miles from your old job, your new job must be at least 55 miles from your former home.
The location of your new home does not figure into the distance test
If you are an employee, you must work full time for at least 39 weeks during the first year after your work-related move.
If you are self-employed, you must work full time for at least 78 weeks during the first two years after your work-related move, in addition to the 39-week test outlined above.
You can deduct your moving expenses before you meet the time test. See the Time Test Not Yet Met topic in IRS Publication 521 for more information.
Deducting Moving Expenses In TaxACT
Moving expenses are deducted on Form 3903. To enter or edit Form 3903 in TaxACT:
- From within your TaxACT return (Online or Desktop), click on the Federal Q&A tab
- Click on Other Adjustments to expand the category, then click Moving Expenses
- Click Add to create a new copy of the form or click Review to review a form already created.
- The program will proceed with the interview questions for you to enter or review the appropriate information.
For lists of deductible and nondeductible moving expenses, as well as illustrated examples of the distance test, see IRS Publication 521.