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What is IRS Publication 521 on Moving Expenses?

IRS Link to Publication — Found Here

Publication 521 details the methods and requirements for tax deductions related to moving expenses, where the move is necessary to start a new job or maintain a job that requires relocation.

The IRS requires that the situation passes tests regarding the distance of the residence to the new job and the time spent at the new job. If an individual moves in order to take a new employment opportunity, he or she may re Moving expenses include travel expenses as well as storage, transportation, and labor costs connected with moving furniture and whatnot.

Many things cannot be deducted as moving expenses, such as any costs associated with purchasing or improving the home. Publication 521 gives many detail surrounding the deduction of moving expenses. It also describes how to handle reporting when expenses are later reimbursed to the individual by their employer.

There are accountable reimbursement plans and non-accountable reimbursement plans, and they have different instructions for reporting. 521 also describes the Distance Test and the Time Test, which must be passed to claim a moving deduction.

The distance test is satisfied if the new job is a least 50 miles further away from the employee’s original residence than their old job was. The time test is satisfied if the employee works at least 39 weeks out of the first 12 months following the move at the new job location.

Individuals must file Form 3903 to claim deductions for moving expenses.

Keywords: Form 3903, Distance Test, Time Test,