-
Step 1
Download IRS Form 3903 from the Internal Revenue Service website (see Resources below for the link) or call (800) TAX-FORM to receive a copy.
-
Step 2
Take the Distance and Time Tests at the bottom of Form 3903 to determine if you can deduct your moving expenses from your taxable income. Enter the number of miles from your former home to your new place of work on Line 1. On Line 2, record the miles from your former home to your previous place of employment. Subtract the amount on Line 2 from Line 1; put the result on Line 3. If Line 3 is 50 or greater, you meet the Distance Test. To pass the Time Test, you must work full time in your new workplace for at least 39 weeks during the 12 months after you move.
-
Step 3
Read the special stipulations that apply to members of the Armed Forces. Military personnel do not have to meet the Distance and Time Test if they experience a "permanent change of station that includes a move in connection with and within 1 year of retirement or other termination of active duty."
-
Step 4
Fill out Form 3903. List transportation and storage costs for household items on Line 1. Note travel costs to your new home (excluding meals) on Line 2. Add Lines 1 and 2; put the sum on Line 3. Enter any money your employer paid toward your moving expenses (not reflected on your W-2) on Line 4. Subtract Line 4 from Line 3. This is your moving expense deduction. If Line 4 is greater than Line 3, you cannot deduct your moving expenses.
-
Step 5
Submit Form 3903 to the IRS along with your 1040 tax return. Check the IRS official website (see our Resources below) for specific instructions regarding the mailing address to which you should send your return; it varies by state.
Comments
Maluminse said
on 9/30/2008 Vague article. I cant say it helped me anymore than the face of the form itself...