Yes! Uncle Sam will pay for your moving expenses!!!
To write off your relocation costs, a move must be work-related. Then you have to pass both time and distance tests. But as long as a move meets these requirements, it doesn't matter if it's your first job, the same job or a new job.
And while you have to use the long Form 1040 to claim the moving costs, you don't have to itemize any other deductions.
The costs are detailed on Form 3903 and the total transferred to the adjustments to income section of your return. There is no Schedule A to complete, no percentage-of-income thresholds to meet, no deduction phase-outs because you made too much money.
Moving tax-break obstacles
The biggest moving hurdle, both practically and taxwise, is the 50-mile distance test. As suburbia and exurbia expand, this test is designed to ensure that your move isn't just a way to ease your daily commute to work.
The location of your new job must be at least 50 miles farther from your previous residence than your last office was. That means if you lived 10 miles from your old job, your new job must be at least 60 miles from your old home before you can deduct moving costs.
The IRS says to figure the distance using the shortest of the more commonly traveled routes; i.e., don't take the scenic route to make sure you meet the mileage measurement. Also, remember that the distance test only considers the location of your old home and how far it is from your previous job versus the one for which you relocated, not your new residence.
Then there's the time requirement. It has two components and is Uncle Sam's way of guaranteeing that you don't use tax breaks just to help you check out the scenery around the country. First, moving expenses generally are deductible if incurred within one year of starting a new job. Secondly, you have to work full time at a new job for at least 39 weeks during the first 12 months. The worked weeks don't have to be consecutive or even with the same employer.
Self-employed workers moving to a new locale must meet the year-to-move deadline and work full time at their entrepreneurial enterprise for 78 weeks during the first 24 months. Again, the worked weeks don't have to be consecutive