Summer is here and school is out, making this the most popular time of year for families to move. If you are moving because of your job, you may be able to deduct your moving expenses. In order to be deductible, you must meet both a distance test and a time test.

1. Distance Test

Your new job location must be at least 50 miles farther from your former home than your previous job location was. Example: If your old workplace was 3 miles from your old home, your new workplace must be at least 53 miles from that home.

2. Time Test

You must work full time in the general area of your new workplace for at least 39 weeks during the first 12 months after your move, or 78 weeks during the first 24 months if you are self-employed.

If your income tax return is due before you have satisfied the time test requirement, you can still deduct your allowable moving expenses if you expect that you will meet the time test. Note that there are some exceptions to the time test, including being laid off or becoming disabled.

If you meet both the distance test and the time test, you can deduct the following:

• Travel: You can deduct lodging expenses for yourself and household members while moving from your former home to your new home. You can also deduct transportation expenses, including airfare, vehicle mileage, parking fees and tolls you pay to move, but you can only deduct one trip per person.
• Household goods: You can deduct the cost of packing, crating and transporting your household goods and personal property. You may be able to include the cost of storing and insuring these items while in transit.

Your expenses must be reasonable for the circumstances of your move.

3. Do Not Include

Costs of buying or selling a home, expenses of entering into or breaking a lease, security deposits and storage charges, other than those incurred in transit cannot be included.

Employer reimbursements must be considered, and can be tricky. In many cases, the reimbursements you receive for moving expenses will be reflected on your W-2, and will show as income on your tax return. This makes it even more important to report the related expenses to offset that income.

When you move, be sure to update your address with the IRS and with the U.S. Postal Service to ensure you receive refunds or correspondence from the IRS. Use Form 8822, Change of Address, to notify the IRS.

To calculate your moving expense deduction, use Form 3903, Moving Expenses, and also refer to IRS Publication 521 for more information regarding deducting your moving expenses.