You may be able to deduct some of the expenses of moving from your taxable income, even if you don't itemize expenses. There are two rules you must satisfy. The distance test requires the new job to be located at least fifty miles from your old residence. The time test requires you to work full-time in the new location (not necessarily at the same job the whole time) for at least thirty-nine weeks in the twelve months following your move.

If you're a new college graduate taking your first full-time job, the work location must be at least fifty miles from your former legal residence, which is the address you use when you file your income taxes, not your school address, so it's probably your parents' home. If you return home after college, you won't qualify for this deduction. If you're married, either you or your spouse can qualify, but you can't add your work times together to pass the thirty-nine week test.

Applicable Expenses

If you meet both of the tests, you can deduct the costs associated with physically moving your belongings from your former legal residence to your new home. This includes the amount paid to a moving company or the cost of a truck rental if you do it yourself. If you use your own car, you can deduct actual expenses for gas and oil or mileage at a rate published by the IRS (20 cents per mile in 2007). Keep a mileage log and save it with your tax papers for the year. You can also deduct airfare, train, bus, and lodging expenses (but not meals) while en route for you and any dependents that you take with you. Keep receipts for everything.

Employer-Sponsored Move

Employers use one of two methods of covering your moving costs. In the first method, your employer gives you a moving allowance for you to use as you see fit, and adds the amount to your taxable income when they issue your W-2 at the end of the year. You can offset some or all of this income by claiming your allowable expenses. In the second method, you pay the expenses yourself and submit a claim to your employer for reimbursement. Only expenses your employer reimburses you for that aren't IRS-allowable will be included on your W-2.

Not all moving-related expenses are allowable. For instance, temporary housing at the new location, house-hunting trips, meals en route to your new home, and long-term storage of your household belongings are not allowable deductions. For details on the moving expense deduction, see IRS Publication 521, Moving Expenses.