Major life milestones often have a major tax impact. Changes in your marital status, having a baby or adopting a child can have significant impact on your taxes. This is the place to ask questions about dependents, real estate, and other various scenarios that play a significant role in what taxes you pay.
02-08-2018 08:56 AM
Last year my sister passed away and I moved from NV to RI to be closer to her children, but because my occupation is so specialized, I have been unable to find work. I was counting on being able to claim my moving expenses but it appears that I cannot because I didn't start work in a reasonable amount of time. I have applied to and interviewed for multiple jobs, but nothing has panned out yet. Is there no way to claim those expenses? It cost me a small fortune...
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02-11-2018 08:34 PM
Hello, AMTimbol, and welcome to the community.
According to the instructions for Form 3903 (Moving Expenses), there are two tests which have to be met in order to claim moving expenses. There is no doubt you meet the first one - distance of 50 miles or more.
The "time" test is a little less certain, though. Since you mentioned interviewing for jobs, I'm going to guess that you aren't self-employed, which makes the requirements more concrete. Based on that, I would lean toward not being able to claim the moving expenses. (See the clip below for details...)
Taken from the Form 3903 instructions: If you are an employee, you must work full time in the general area of your new workplace for at least 39 weeks during the 12 months right after you move. If you are self-employed, you must work full time in the general area of your new workplace for at least 39 weeks during the first 12 months and a total of at least 78 weeks during the 24 months right after you move.
What if you do not meet the time test before your return is due? If you expect to meet the time test, you can deduct your moving expenses in the year you move. Later, if you do not meet the time test, you must either:
• Amend your tax return for the year you claimed the deduction by filing Form 1040X, Amended U.S. Individual Income Tax Return, or
• For the year you cannot meet the time test, report as income the amount of your moving expense deduction that reduced your income tax for the year you moved.
Unfortunately, I don't see a way that you would be able to claim the moving expenses. Sorry to be the bearer of bad news...
Hope that helps clear things up a bit.