If a person has started moving in one tax year and finishes in the next year, can a deduction be taken in both years?

If a person has started moving in one tax year and finishes moving in the next year, can a deduction be taken in both years?

If you moved because of a change in your job location or because you started a new job, you may be able to deduct your moving expenses if your move is closely related to the start of work. To qualify for the moving expense deduction, you must meet the distance and time tests.

Your move will meet the distance test if your new main job location is at least 50 miles farther from your former home than your old main job location was.

You will meet the time test if:

• You are an employee: You must work full time for at least 39 weeks during the 12 months right after you move or
• 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 after you move.

If you haven't met the time test, you may deduct the moving expenses on your 2008 return as long as you expect to meet the time test. Then, if you don't meet the test, you must either file an amended return or report as income on your 2009 return the amount you deducted on your 2008.

You may have a choice of when to deduct your moving expenses and report any reimbursement. If you were not reimbursed, deduct your moving expenses either in the year you incurred them or in the year you paid them.

Example: In December 2008, your employer transferred you to another city in the United States, where you still work. You are single and were not reimbursed for your moving expenses. In 2008, you paid for moving your furniture and deducted these expenses on your 2008 tax return. In January 2009, you paid for travel to the new city. You can deduct these additional expenses on your 2009 tax return.