IRS Topic 455- Moving Expenses
The distance test: Your new workplace must be at least 50 miles farther from your old home than your old job location was from your old home. If you had no previous workplace, your new job location must be at least 50 miles from your old home.
The time test: If you are 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 are 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.
If you are a member of the armed forces and your move was due to a military order and permanent change of station, you do not have to satisfy the “distance or time tests.”
Moving expenses are figured on Form 3903 (PDF), Moving Expenses, and deducted as an adjustment to income on Form 1040 (PDF). You cannot deduct any moving expenses covered by reimbursements from your employer that are excluded from income.
For more information on deductible and nondeductible moving expenses, refer to Publication 521, Moving Expenses. Also, refer to Publication 521 for information on moves to locations in and outside the United States.