Moving and Taxation

What else to do on a rainy holiday in February than to start on my taxes?
Many of us are getting our records in order in preparation for tax day, April 15, 2009. If you made a move this year, deducting moving expenses may be on your mind. But are all expenses allowable tax deductions? The following info came to me from The Move Advocate.
The IRS allows tax deductions for some of the costs associated with a move to accommodate a job in a new location. There are, however, two tests which must be met in order to qualify for deductions.
Test 1 - Distance Test
To qualify for a deduction, your new principal workplace must meet a 50 mile test. The distance between the old home and old work minus the distance between the old home and the new work must be greater than 50 miles. In other words, if the commute to the old workplace was 3 miles, a commute from the previous home to the new workplace must be at least 53 miles. If the person did not have a job before moving, then the new job must be at least 50 miles from the previous home.
Test 2 - Time Test
A person must work full time in the general area of the new workplace for at least 39weeks during the 12 months right after the move. There are exceptions to the time test and other rules apply for those that are self-employed.
If you are not sure if you meet the requirements to deduct your moving expenses it is best to check with a tax advisor or visit the IRS website, Publication 521, and Form 3903 for more details.
If both tests are passed then some expenses may be deductible:
Costs for packing, crating and movement of your household goods
Up to 30 days of storage and insurance for household goods
Transportation and lodging expenses (not meals) while traveling to new location
According to Forbes, one of the top reasons for IRS tax audits is claiming too much for itemized deductions, including the deduction of moving expenses, so when in doubt, check with your tax advisor!