Question

Jill currently lives in the suburbs and commutes 25 miles to her office in downtown Freeport. She is considering quitting her current job to look for new employment in the downtown area. Which of the following statements best describes how Jill can satisfy the distance test for deducting moving expenses if she accepts a new job in downtown Freeport?

1) Jill must move at least 50 miles away from her current residence
2) Jill must move at least 100 miles away from her current residence
3) Jill must move at least 25 miles away from her current residence
4) Jill must move at least 10 miles away from her current residence

Answer 1

Jill must move at least 50 miles farther from her current residence than her old job to satisfy the distance test for deducting moving expenses. Therefore, she would need to move at least 75 miles away if her current commute is 25 miles.

Step-by-step explanation:

To satisfy the distance test for deducting moving expenses, Jill must ensure her new workplace is at least 50 miles farther from her former home than her old job location was. Since Jill's current commute is 25 miles to downtown Freeport, in order to meet the criteria for deduction, she would need to ensure that her move is at least 75 miles from her current home (50 miles + her current 25-mile commute)

Thus, the correct answer to how Jill can satisfy the distance test for deducting moving expenses if she accepts a new job in downtown Freeport is by moving at least 50 miles away from her current residence, making option 1) the correct statement.