Publication 521 - Moving Expenses - 2002 (Page 4 of 17) in pdf

Both of these tests are explained below. See Table 1 for a

1) You count any full-time work you do either as an

summary of these tests.

employee or as a self-employed person.

2) You do not have to work for the same employer or

Time Test for Employees

be self-employed in the same trade or business for

the 78 weeks.

If you are an employee, you must work full time for at least

39 weeks during the first 12 months after you arrive in

3) You must work within the same general commuting

the general area of your new job location. Full-time em-

area for all 78 weeks.

ployment depends on what is usual for your type of work in

If you were both an employee and self-employed, see

your area.

Table 1 for the requirements.

For purposes of this test, the following four rules apply.

Example. Justin quit his job and moved from the east

1) You count only your full-time work as an employee,

coast to the west coast to begin a full-time job as a

not any work you do as a self-employed person.

cabinet-maker for C and L Cabinet Shop. He generally

worked at the shop about 40 hours each week. Shortly

2) You do not have to work for the same employer for

after the move, Justin also began operating a cabinet-in-

all 39 weeks.

stallation business from his home for several hours each

3) You do not have to work 39 weeks in a row.

afternoon and all day on weekends. Because Justin’s

principal place of business is the cabinet shop, he can

4) You must work full time within the same general

satisfy the time test by meeting the 39-week test for em-

commuting area for all 39 weeks.

ployees.

If Justin is unable to satisfy the requirements of the

Temporary absence from work. You are considered

39-week test during the 12-month period immediately fol-

to have worked full time during any week you are tempora-

lowing his arrival in the general location of his new principal

rily absent from work because of illness, strikes, lockouts,

place of work, he can satisfy the 78-week test.

layoffs, natural disasters, or similar causes. You are also

Self-employment. You are self-employed if you

considered to have worked full time during any week you

work as the sole owner of an unincorporated business or

are absent from work for leave or vacation provided for in

as a partner in a partnership carrying on a business. You

your work contract or agreement.

are not considered self-employed if you are semiretired,

Seasonal work. If your work is seasonal, you are con-

are a part-time student, or work only a few hours each

sidered to be working full time during the off-season only if

week.

your work contract or agreement covers an off-season

Full-time work. You can count only those weeks during

period and that period is less than 6 months. For example,

which you work full time as a week of work. Whether you

a school teacher on a 12-month contract who teaches on a

work full time during any week depends on what is usual

full-time basis for more than 6 months is considered to

for your type of work in your area.

have worked full time for the entire 12 months.

Example. You are a self-employed dentist and maintain

office hours 4 days a week. You are considered to perform

Time Test for Self-Employed Persons

services full time if maintaining office hours 4 days a week

is not unusual for other self-employed dentists in the area.

If you are self-employed, you must work full time for at least

39 weeks during the first 12 months AND for a total of at

Temporary absence from work. You are considered

least 78 weeks during the first 24 months after you

to be self-employed on a full-time basis during any week

arrive in the general area of your new job location.

you are temporarily absent from work because of illness,

For purposes of this test, the following three rules apply.

strikes, natural disasters, or similar causes.

Table 1. Satisfying the Time Test for Employees and Self-Employed Persons

IF you are...

THEN you satisfy the time test by meeting the...

an employee

39-week test for employees.

self-employed and an employee but unable to satisfy the

78-week test for self-employed persons.

39-week test for employees

both self-employed and an employee at the same time

78-week test for a self-employed person or the 39-week

test for an employee based on your principal place of work.

self-employed

78-week test for self-employed persons.

Page 4

Publication 521 - Moving Expenses - 2002 Page 4

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