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  • Moving tax deduction

    I have a question about deducting moving costs for my fellowship year.  I am moving out of state for a 1 year fellowship in August of 2017.  I have read a little about deducting the cost of the move but a little confused about "the time test". Here is how it is stated from the IRS, The time test - If you're an employee, you must work full-time for at least 39 weeks during the first 12 months immediately following your arrival in the general area of your new job location. If you're self-employed, you must work full time for at least 39 weeks during the first 12 months and for a total of at least 78 weeks during the first 24 months immediately following your arrival in the general area of your new work location. There are exceptions to the time test in case of death, disability, and involuntary separation, among other things. See Publication 521 for these exceptions.

     

    Since I will not work for 39 weeks due to moving in August in 2017, can I still deduct on my taxes for 2017 or do I need to wait a year and deduct in April of 2019 for my 2018 taxes to "pass the time test".  Thanks for the clarification.

     

  • #2


    Since I will not work for 39 weeks due to moving in August in 2017, can I still deduct on my taxes for 2017 or do I need to wait a year and deduct in April of 2019 for my 2018 taxes to “pass the time test”.  Thanks for the clarification.
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    You will be able to deduct your moving expenses on your 2017 tax return. If, for some reason, you end up working in your new location for less than 39 weeks, you must amend your 2017 return to remove the moving expense deduction.
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #3
      Thank you for the help!

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