If I relocated for a new job, is there a moving expenses deduction available to me? My employer is not paying for my relocation, are the moving costs a tax deduction?

You can qualify for a moving expenses deduction if you meet all three of these tests:

  • Closely related in time and place test -- Both of these must apply:
    • Closely related in time -- You must incur the moving expenses within one year of the date you first started work at the new location. If you don't, your moving costs are not a tax deduction unless you can prove circumstances prevented the move within that time.
    • Closely related in place -- Your new home must not be farther away from the new job location than your former home was. If you don't meet this requirement, your moving costs might qualify for a tax deduction if you can show one of these:
      • You're required to live at the new home as a condition of employment.
      • You'll spend less time or money commuting from the new home to the new job location.
  • Distance test -- You must have moved at least 50 miles farther from your former home than the old main job location was from the former home. Ex: If your old main job location was three miles from your former home, the new main job location must be at least 53 miles from that former home.
  • Time test -- Both of these apply to the general area of your new job location:
    • If employed, you must work full-time for at least 39 weeks during the first 12 months after arriving in the general area. Full-time employment depends on what's usual for your type of work in your employment area.
    • If self-employed, you must work after arriving in the general area:
      • Full-time for at least 39 weeks during the first 12 months
      • Total of 78 weeks during the first 24 months

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Calculators

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