Can someone please explain the Federal "moving statute" (tax law question) ?

Question

As it applies to 4 USC 114

Answer 1

Read it for yourself.

http://uscode.house.gov/uscode-cgi/fastw...

Answer 2

The moving statute has to do with a state's right to tax pension or other retirement income.  States felt that they had a right to tax the pensions of anybody who worked a lot of years in that state even though they moved to another state, on the premise that they earned the income that earned them the pension while working in their state.  The US Code section you reference makes that impossible.  A retiree is taxed only by his state of residence while he receives that income.

Answer 3

???

If you move to start a new job or accept work at a new location--and work at least 39 weeks there, the IRS will allow you to deduct the cost of moving your stuff.

If the move costs you $5000 and you are in the 15% tax bracket, this can save you $750 in tax.

IRS publication 523 and form 3903.