Taking It With You

Moving your family is never easy. But for some reason, many parents have the false notion that it's easier to move a child during the sun-dappled days of summer than to yank him out of school and move in a grayer season.

Parents, heed the words of a woman who was forced to move twice during the summer months of her youth. I still live with the scars.

Even with that warning, many families will move this summer. So if you must, beware not only of your child's mental health but of the surrounding tax implications.

Recover Some Expenses

Angry kids aside, you may actually be able to deduct any out-of-pocket moving expenses if you're moving because of your job. Anything your employer reimburses you for is not deductible.

To be able to deduct anything, you have to meet a few quirky IRS rules.

The first says that your new job must be at least 50 miles farther from your old home than your old job was. Huh? Example, please! If your old job was three miles from your old home, your new job must be at least 53 miles from your old home.

The next bizarre rule says you must work at the new location for at least 39 weeks, during the first 12 months. (Who makes this stuff up?)

Assuming you qualify, you can then deduct the cost of moving you, your family and your belongings from location A to location B. Bear in mind that only the unreimbursed costs associated with the actual move are deductible. If you took trips back and forth to your new location to scout out housing prospects or open a bank account, forget deducting the costs of those trips.

The good news is that moving expenses are reported on line 29 of your Form 1040, and there's no limitation on the amount you can deduct. So tally all your out-of-pocket costs. And be sure to check out IRS Publication 521 -- Moving Expenses for more grist.

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