Claiming Moving Expenses
Moving expenses are reported on IRS Form 3903, Moving Expenses, which
is one of the simpler and more self-explanatory tax forms that you
will run across. Moves to a location outside the U.S. are also reported
on Form 3903. If you move to more than one location during the year,
you'll need to fill out two forms.
Either of these forms will
ask you to add up your total moving expenses in the two categories
of deductible expenses described above. Then, you will subtract any
reimbursements you receive from your employer that were not included
in Box 1 of your W-2 form along with your other taxable wages. The
amount of these reimbursements, if any, should have been shown in
Box 12 of your W-2 form and marked with Code P.
If your employer's
payments were higher than your deductible expenses, you must report
the excess as income from wages, salaries, or tips on Line 7 of your
1040 Form.
If your expenses were higher than any reimbursements
you received, the difference will be your deductible moving expenses,
which are subtracted as an adjustment to income on page 1 of your
1040 Form. You cannot claim moving expenses on either Form 1040EZ
or 1040A.
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