Distance Test

In addition to the "closely related" test, there is another test related to distance that must be met if you want to deduct moving expenses.

The distance between your old home and your new job must be at least 50 miles farther than the distance from the old home to the old job. In other words, your new job would have increased your commuting distance by at least 50 miles, if you hadn't moved.

Example Sally travels 60 miles one way to get to work. She takes a new job that would require her to travel 65 miles and, since she feels the extra time makes her commute just too long, she bites the bullet and buys a new home only two miles from the new job. Sally cannot deduct her moving expenses, because the new job would only have increased her commute by five miles.

For those who are seeking their first full-time job or have been out of the workforce for a significant period of time, the new place of work must be at least 50 miles from your old home.