If you moved in 2001, chances are you're ecstatic that the hassle of moving is finally over. But don't put it too far out of your mind - if you or your spouse got a new job or transferred to a new work location, you might be able to deduct your moving expenses from your taxable income.

The U.S. Census Bureau reports that about 16 percent of all relocations in 2000 were work-related - a new job in a new community or state, or a move to ease a stressful commute.

Before you start counting the dollars you might save, you must first pass the IRS' moving deduction test.

In order to qualify, there are two major criteria you must meet - the move must be close to the time you begin work and your new home must be closer to your place of employment than your former home and workplace.

The IRS says you can generally consider moving expenses incurred within one year from the date you begin work at the new location. It doesn't matter if you get the new job before or after you move.

In order to pass the distance test, your new job location must be at least 50 miles farther from your former home than your old main job location was from your former home. For example, if your old workplace was 10 miles from your old house, your new place of employment must be at least 60 miles from the former home.

And when it comes to the time test, if you are an employee you must work full-time for at least 39 weeks during the first 12 months after you arrive in the region of your new job location.

It's a bit tougher if you're self-employed - you must work full time for at least 39 weeks during the first 12 months and for at least 78 weeks during the first 24 months after you arrive. If you're married, you can use you or your spouse in determining the number of weeks worked, but you can't combine weeks.

Of course, there are exceptions. For example, if you're a member of the Armed Forces on active duty and you move because of a permanent change of station, you don't have to meet the time and distance tests.

So, if you've passed the tests, what can you deduct?

Published: March 18, 2002

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