Tax Breaks for Work Expense

Workers relocating for a job can claim tax deductions for moving expenses. To qualify, they must list these expenses on their tax returns at the end of the year. If the IRS approves them as work-related, workers will receive the deductions. However, specific IRS rules apply.

The first rule involves distance. To qualify, the new job must be at least 50 miles farther from the worker’s old home than their previous workplace. For example, if someone previously commuted 4 miles, they need to travel at least 54 miles to qualify for deductions. This means their new workplace is 50 miles farther from their old home.

Another requirement is that the worker’s former home should be closer to their old job than to their new one, also using the 50-mile distance rule. The total distance from the old home to the old workplace must be added to 50 miles to determine the acceptable distance for the new job. If this criterion is met, moving expenses can be deducted from their taxes.

If all conditions are met, the taxpayer can deduct moving expenses. To do this, they should report the expenses on Form 3903 and submit it with their Form 1040 to claim the deductions.