Tax deductions for moving

Department of the Treasury Internal Revenue Service Form 3903

They hadn't finished cleaning up from the New Year's celebration in Times Square before the first inquiry arrived about moving deductions.

A recent graduate asked what relocation related expenses he could claim on his move from Massachusetts to a new job in western New York. He moved last fall by packing everything he owned into the back of an old Ford Taurus his grandmother gave him.

According to federal Internal Revenue Service (IRS) guidelines included in publication 521 - 2009 Moving Expenses , eligible tax payers can deduct their moving expenses if they meet all three of the following requirements.

• The move is closely related to the start of work
• It passes the distance test, and;
• The time test.

Pass all three and eligible taxpayers can deduct the 'reasonable' expenses of:

• Moving their household goods and personal effects (including in-transit or foreign-move storage expenses), and
• Traveling (including lodging but not meals) to a new home.

My young visitor, for instance, could deduct the standard mileage rate 24 cents a mile for using his vehicle to move to a new home in 2009.

For help determining what, if any, moving expense you can claim use Form 3903 - Moving Expenses to calculate your allowed deductions. You cannot deduct moving expenses if you plan to use Form 1040EZ or Form 1040A to file your 2009 federal income taxes.