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I am a 1099 consultant. I moved to be closer to my main client. Can I deduct moving expenses?
ANSWER
The BIDaWIZ Team's Answer:
As per the Internal Revenue Code Section 217, you may deduct moving expenses paid or incurred during the taxable year in connection with the commencement of work as a self-employed individual at a new principal place of work. Please note that certain conditions apply for 1099 tax workers. Specifically, 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 immediately following your arrival in the general area of your new work location. In addition, your new workplace must be at least 50 miles farther from your old home as compared to the distance from you old home to your old job location.
The deduction is computed on Form 3903 of your Form 1040.
References: Internal Revenue Code Section 217; IRS Publication 521