Moving Deduction from Remote to Desk Job at Two Different Companies

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MutualEdge
Posts: 44
Joined: Sun May 28, 2017 6:46 pm

Moving Deduction from Remote to Desk Job at Two Different Companies

Post by MutualEdge » Fri Sep 08, 2017 8:06 pm

Hi all,

I previously moved from a remote position where I worked 230 miles from HQ to a new job at a new company 10 miles from old company HQ. My commuting distance was zero as a remote employee.

My new job is 240 miles from my former home where I worked remotely. I moved as a result of the offer and currently travel into the office. I'm going through the IRS guides on claiming moving expenses and some message boards and am having trouble finding scenarios that apply to the remote aspect of this.

I meet the time test, but since I worked remotely and my commuting distance was 0 miles, do I then also meet the distance test because 240 miles > 50 -0 and can I claim moving expenses?

Thanks in advance.

MutualEdge
Posts: 44
Joined: Sun May 28, 2017 6:46 pm

Re: Moving Deduction from Remote to Desk Job at Two Different Companies

Post by MutualEdge » Sat Sep 09, 2017 10:19 am

bumping this

clydewolf
Posts: 672
Joined: Tue Jul 21, 2015 12:51 pm

Re: Moving Deduction from Remote to Desk Job at Two Different Companies

Post by clydewolf » Sat Sep 09, 2017 1:19 pm

MutualEdge wrote:
Fri Sep 08, 2017 8:06 pm
Hi all,

I previously moved from a remote position where I worked 230 miles from HQ to a new job at a new company 10 miles from old company HQ. My commuting distance was zero as a remote employee.

My new job is 240 miles from my former home where I worked remotely. I moved as a result of the offer and currently travel into the office. I'm going through the IRS guides on claiming moving expenses and some message boards and am having trouble finding scenarios that apply to the remote aspect of this.

I meet the time test, but since I worked remotely and my commuting distance was 0 miles, do I then also meet the distance test because 240 miles > 50 -0 and can I claim moving expenses?

Thanks in advance.
Yes, you meet the distance test.
The distance is from your old work location (your home) to your new work location (new employer's office).

See IRS Pub 521 for details: https://www.irs.gov/publications/p521/a ... 1000203444

MutualEdge
Posts: 44
Joined: Sun May 28, 2017 6:46 pm

Re: Moving Deduction from Remote to Desk Job at Two Different Companies

Post by MutualEdge » Sun Sep 10, 2017 8:40 am

Thank you for your response; appreciate it. I'll amend.

cherijoh
Posts: 4053
Joined: Tue Feb 20, 2007 4:49 pm
Location: Charlotte NC

Re: Moving Deduction from Remote to Desk Job at Two Different Companies

Post by cherijoh » Sun Sep 10, 2017 8:56 am

MutualEdge wrote:
Fri Sep 08, 2017 8:06 pm
Hi all,

I previously moved from a remote position where I worked 230 miles from HQ to a new job at a new company 10 miles from old company HQ. My commuting distance was zero as a remote employee.

My new job is 240 miles from my former home where I worked remotely. I moved as a result of the offer and currently travel into the office. I'm going through the IRS guides on claiming moving expenses and some message boards and am having trouble finding scenarios that apply to the remote aspect of this.

I meet the time test, but since I worked remotely and my commuting distance was 0 miles, do I then also meet the distance test because 240 miles > 50 -0 and can I claim moving expenses?

Thanks in advance.
From IRS:
The distance test - Your new workplace must be at least 50 miles farther from your old home than your old job location was from your old home. If you had no previous workplace, your new job location must be at least 50 miles from your old home.
Therefore, I think you need to add a note to your amended return to make it clear that you worked remotely for the old job and that the new job is a desk job.

Otherwise the IRS might do a simple check and think that you failed the distance test.
Old home - old job = 230 miles (physical distance to HQ)
Old home - new job = 240 miles
240 - 230 = 10 miles < 50 miles

How often did you visit HQ for the old job? Did your company pay your travel expenses when you visited HQ? If you answered "not often"
and/or "yes" that would support that your commute distance really was zero for the old job. I work primarily from home but visit the office ~ 2 - 4 times per month and travel is not reimbursed, so if I were to move for a new job I would definitely use my current commute distance (not zero) in the calculation for the distance test.

Edited for clarification.

Katietsu
Posts: 848
Joined: Sun Sep 22, 2013 1:48 am

Re: Moving Deduction from Remote to Desk Job at Two Different Companies

Post by Katietsu » Sun Sep 10, 2017 9:17 am

I would not include a note with your tax return. I would however write such a note that I included in my own files. The information could then be provided in the very unlikely circumstance that the IRS questions your moving expenses.

MutualEdge
Posts: 44
Joined: Sun May 28, 2017 6:46 pm

Re: Moving Deduction from Remote to Desk Job at Two Different Companies

Post by MutualEdge » Mon Sep 11, 2017 1:48 pm

cherijoh wrote:
Sun Sep 10, 2017 8:56 am
MutualEdge wrote:
Fri Sep 08, 2017 8:06 pm
Hi all,

I previously moved from a remote position where I worked 230 miles from HQ to a new job at a new company 10 miles from old company HQ. My commuting distance was zero as a remote employee.

My new job is 240 miles from my former home where I worked remotely. I moved as a result of the offer and currently travel into the office. I'm going through the IRS guides on claiming moving expenses and some message boards and am having trouble finding scenarios that apply to the remote aspect of this.

I meet the time test, but since I worked remotely and my commuting distance was 0 miles, do I then also meet the distance test because 240 miles > 50 -0 and can I claim moving expenses?

Thanks in advance.
From IRS:
The distance test - Your new workplace must be at least 50 miles farther from your old home than your old job location was from your old home. If you had no previous workplace, your new job location must be at least 50 miles from your old home.
Therefore, I think you need to add a note to your amended return to make it clear that you worked remotely for the old job and that the new job is a desk job.

Otherwise the IRS might do a simple check and think that you failed the distance test.
Old home - old job = 230 miles (physical distance to HQ)
Old home - new job = 240 miles
240 - 230 = 10 miles < 50 miles

How often did you visit HQ for the old job? Did your company pay your travel expenses when you visited HQ? If you answered "not often"
and/or "yes" that would support that your commute distance really was zero for the old job. I work primarily from home but visit the office ~ 2 - 4 times per month and travel is not reimbursed, so if I were to move for a new job I would definitely use my current commute distance (not zero) in the calculation for the distance test.

Edited for clarification.
Thanks; you articulated my conundrum perfectly. I wanted to be sure that if I was thinking about amending based on new knowledge that it was all above-board. I visited HQ maybe 4-5 times in a two-year period so I really was a remote employee. I appreciate you taking the time to respond and share your perspective; that's exactly what I was hoping for.
Last edited by MutualEdge on Mon Sep 11, 2017 1:50 pm, edited 1 time in total.

MutualEdge
Posts: 44
Joined: Sun May 28, 2017 6:46 pm

Re: Moving Deduction from Remote to Desk Job at Two Different Companies

Post by MutualEdge » Mon Sep 11, 2017 1:50 pm

Katietsu wrote:
Sun Sep 10, 2017 9:17 am
I would not include a note with your tax return. I would however write such a note that I included in my own files. The information could then be provided in the very unlikely circumstance that the IRS questions your moving expenses.
Thanks @katietsu! I'll write a memo to the file. The amount isn't extremely significant, but will make enough of a difference on my return to justify going through the trouble. Plus it's a good learning experience for me.

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