Distance test

• To pass the distance test, your new job location needs to be far enough away from your old home.
  
  According to the IRS, you can deduct moving expenses when your new job site is located at least 50 miles farther from your former residence than your past job was. You can also pass this test even if you didn't have a former job. In this case, your new position must be located at least 50 miles from your former home.
  
  

Time test

• To pass the time test, you need to work full-time for at least 39 weeks at your new job location during the first 12 months after you've moved to your new position's general location.
  
  The rules are bit more stringent for self-employed workers. If you are one of these, you'll have to work full-time for at least 39 weeks, again, at your new job site for the first 12 months, but you'll also have to log full-time work for a total of at least 78 weeks during the first 24 months after you've moved closer to your new position.
  
  If you are a member of the U.S. Armed Forces and you are moved because of your position, you do not have to meet either the time or distance tests to deduct your moving expenses.
  
  You are not allowed to claim any deductions that your new employer paid for directly. However, some employers will simply cut workers a check to cover the moving expenses. Workers must then report this as extra income and then deduct the amount as moving expenses.
  
  

Deductible expenses

• If you meet the time and distance tests, there are several moving expenses that you can claim as deductions. This includes the cost of packing, crating and transporting household goods from your old house to your new residence. It also includes the cost of connecting and disconnecting utilities.
  
  If you need to ship your car and pet to your new home, you can also deduct these expenses. You are allowed, too, to deduct up to 30 consecutive days of storage costs after your furniture and household goods are moved from your old home and before they arrive at your new one.
  
  Finally, you can claim any transportation and lodging costs that you take on while moving from your current home to your new one.
  
  When claiming your moving expenses, calculate them by using IRS Form 3903, and then file them as an adjustment to your income on Form 1040.