Tax deduction for moving expenses?

[Tom52]

In anticipation of of a job loss later this year, I am trying to formulate a plan for the future. If, and when, I lose my job, I want to relocate to a lower cost area in the midwest, most likely to my home state of Iowa. This would be about a 250 mile move.

If possible I would like to take advantage of any possible tax breaks available to me in regards to the cost of moving. This brings up several questions in my mind but I will only ask one at a time and go from there.

First question, is there a tax deduction available for moving expenses if you lose your job and find a job long distance from your current residence and have to relocate? Obviously, a job may be available closer to our home now, but how could the IRS gauge your motives of wanting to relocate to a specific area after you have been given the boot by your current employer?

 

[Sue J]

Here's some info about moving expenses for a job -
Moving Expenses Related to a New Job May Be Tax Deductible

Here is a 19 page pdf file of Publication 521 with more details -
http://www.irs.gov/pub/irs-pdf/p521.pdf

Keep track of every expense including mileage. This is a nice deduction because it's claimed on the front page of 1040, which means that you can take it even if you don't itemize and it's not subjected to a percentage of your income.

You can also get a deduction for job search expenses, but this one is included in Itemized Deductions as part of Miscellaneous Deductions, the total of which has to exceed 2% of your Adjusted Gross Income.

Here's the pdf file for the Miscellaneous Deductions Publication 529 -
http://www.irs.gov/pub/irs-pdf/p529.pdf

The IRS will not ask about your motives for moving.

 

[Tom52]

Thanks Sue, I think that answers my questions.