Marc Clay was unemployed for the entire year 2012. In January 2013, Clay obtained full-time employment 60 miles away from the city where he had resided during the 10 years preceding 2012. Clay kept his new job for the entire year 2013. In January 2013, Clay paid direct moving expenses of $1,300 in relocating to his new city of residence, but he received no reimbursement for these expenses. In his 2013 income tax return, Clays direct moving expenses are Not deductible. Fully deductible only if Clay itemizes his deductions. Fully deductible from gross income in arriving at adjusted gross income. Deductible subject to a 2% threshold if Clay itemizes his deductions.