I wish I had thought of this last year, but now it's too late. Since budgets are tight all around, it might be more difficult to negotiate moving expenses into a new job agreement, but it doesn't have to be a total waste. You may be able to deduct your expenses from your taxes.
The IRS employs three "tests" of whether your move qualifies for a tax deduction: the "start of work" test, the "distance" test, and the "time" test. The start-of-work test requires that you move for a job. Generally you can deduct moving expenses if you move within one year of starting a new job, provided that you meet the other two tests.
The IRS employs three "tests" of whether your move qualifies for a tax deduction: the "start of work" test, the "distance" test, and the "time" test. The start-of-work test requires that you move for a job. Generally you can deduct moving expenses if you move within one year of starting a new job, provided that you meet the other two tests.
The second test is the distance between your new job and your old home. If your new job is at least 50 miles farther from your old home than your old job was, you can deduct expenses. (If this is your first job, the "distance" between old job and old home is defined as 0 miles.)
Also, your commute between your new job and your new home can't be longer than your commute between your old job and your old home, unless for some reason your employment requires you to live with a longer commute.
The third test requires you to be employed for at least 39 weeks, working 40 hours a week, in the year after you move. It doesn't all have to be for the same employer, and any vacation time, personal time, or illness counts as having worked full-time.
* The costs of packing and transporting your household goods (that includes anything you spend on movers);
* The use of your personal car, if you use it to move, or other travel (such as plane tickets) from your old to your new place;
* The cost of shipping your car or pets;
* The cost of disconnecting utilities at your old place and setting up utilities at your new place;
* Any lodging costs you incur between leaving your old place and moving into your new place.
Things you cannot deduct:
* Any part of the purchase price of a new home, or the security deposit on a new apartment;
* Any pre-move expenses you incur looking for a new place;
* Expenses related to getting a new driver's license or car registration.
