question.jpgIn Federal Income Tax

Can I deduct my moving expenses if I haven’t met the time test, but know I will?

Moving expenses can be claimed as a deduction even if you have not yet met the time requirement, as long as you believe that you will. For example, suppose you moved to your new location in August 2006, and started working at your new job on September 1, 2006. Even if you work straight through until April 15, 2007, you will have only worked at the new location for 32 weeks, which is 7 weeks short of the 39 week requirement (assuming you are an employee).

Nevertheless, you can still claim your moving expenses as long as you expect to complete the time requirement. But you should be careful, because if you claim the moving expenses before meeting the time requirement and then you do not subsequently meet the requirement (if in the above situation, for example, you quite your job at the end of April and move out of the state), you must either file an amended return removing that deduction or you must claim your original moving expenses as income in your next tax return. To avoid this risk, an alternative route you can take is to file your taxes without taking the moving expenses deduction, and then once you have met the time requirement you can file an amended return claiming the deduction.