Have You Moved For a New Job? If so, Remember to File Form 3903
In these troubled economic times, many people no longer have the luxury of waiting around until a job becomes available. Instead, many people – especially those that have lost their homes – are packing up and moving away in search of work. Although many people do not realize it, if you move to a new place in order to accept a new job – or simply move elsewhere and quickly get a new job – you may be able to claim at least part of your moving expenses against your income tax liability. The Internal Revenue Service (IRS) has a form specifically dedicated to this purpose, Form 3903.
Of course, like everything else the IRS does, it is not as simple as claiming your expenses. First, you have to pass two tests, one related to distance and the other related to the amount of time you have worked at your new job. To pass the distance test, your new workplace must be at least fifty miles more than the distance between your old home and old job. That means, in effect, that if you used to live five miles from your old job, your new job must be at least fifty five miles away from your old home. If you did not have an old workplace, then you new job must be at least fifty miles from your old home. While the basic fifty mile requirement makes sense, the convoluted language of the wording of the rule seems uncalled for. Luckily, Form 3903 comes with a very simple work sheet to let you see if you pass the distance test and qualify for the deduction.
In order to qualify for the deduction you also have to work for a minimum of thirty-nine weeks, full time, at your new job. Presumably this is to prevent people from moving and claiming the credit though working at a series of small jobs that plainly was not the primary incentive for the move. The exact rules are, like so much else the IRS comes up with, fairly complicated, so you should carefully read over the instructions and be sure that you qualify before filing for this tax credit. However, the IRS does allow you to file in advance of the full requirement being fulfilled as long as you do stay employed long enough to meet time requirements for the tax deduction.
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