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Step 1
Make sure you are eligible to take the moving expenses deduction. At the bottom of Form 3903, there is a "Distance Test Worksheet." Input the miles from your old house to your new place of employment. Then put in the miles from your new house to your new place of employment. If the difference is more than 50 miles, you can take this deduction. If it fewer than 50 miles, you cannot take this deduction.
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Step 2
Fill out Line 1 of Form 3903. Add the cost of renting a moving truck, paying for a storage facility if that was necessary or the cost of hiring a moving company.
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Step 3
Calculate your gas cost. You can use the receipts from your trip or use the government allowance for mileage. If you are unsure of the miles between your old and new homes, use a website such as MapQuest or Google Maps.
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Step 4
Add the cost of fuel to the total paid for hotels on your move. Also add the cost of any flights to get to your new home. If some of the family drove and some flew, you can include both costs. Put the total travel expenses on Line 2 of Form 3903.
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Step 5
Fill in the amount of travel expenses your employer reimbursed you for. But you do not have to include this amount if it shows up on your W-2 as income. If you have an amount in Box 12 of your W-2 with a "P" after it, your moving expense reimbursement was included in your income and does not need to be reported on Line 4 of Form 3903.
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Step 6
Subtract Line 4 (moving expense reimbursements) from Line 3 (total moving expenses). Put this amount on Line 5. As long as your moving expenses are greater than your reimbursement, you can take this deduction.
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Step 7
Fill in your moving deduction from Line 5 onto the front page of your 1040. Read carefully and put your deduction on the line that says moving expense deduction.
