Distance Requirements

• According to IRS rules, you can deduct relocation expenses if you started a new job or changed positions within your company. If you are self-employed, you can also deduct relocation expenses. To qualify for the deduction, your new workplace must be at least 50 miles farther from your old home than your old job was from your old home. If you are self-employed, your new job location must be at least 50 miles from your old home. You cannot deduct expenses that are reimbursed by your employer.
  
  

Time Test

• If you are hired as an employee, the IRS requires that you work full-time for a minimum of 39 weeks during the first 12 months after arrival to qualify for relocation expense tax deductions. If you are self-employed, you must work full-time for a minimum of 39 weeks during the first year and for at least 78 weeks during the first two years immediately following your arrival.
  
  

Job Search Expenses

• If your relocation required you to search for a job prior to moving, you can deduct travel expenses associated with your job hunt as long as your new job is closely related to your former employment. Qualifying car expenses, airfare, travel-related fees, lodging and a percentage of your meals are tax-deductible. If a significant amount of time has passed since you were last employed, you may not qualify for job-searching tax deductions.
  
  

Moving Expenses

• Moving expenses associated with relocation are tax-deductible. The transport of household goods and personal effects is a tax-deductible expense. If your transition requires in-transit storage, you can also deduct those fees on your federal return. Your moving expenses must be reasonable and transportation should include the shortest distance between your old home and your new destination. In-transit lodging is a tax-deductible expense, but meals are not.