How to File a Moving Allowance in Federal Income Taxes?

Moving expenses may be deductible.

Moving expenses are deductible if you meet a distance and time test. Your new workplace must be at least 50 miles from your old home or old workplace. Form 3903 provides a distance test worksheet on page 1. In general, to meet the time test, you must work or expect to work full time at your new workplace for 39 weeks.

Things You'll Need

• Form 3903
• W-2
• Form 1040 or Form 1040NR
• List of moving expenses and receipts

Instructions

1. Collect any receipts for travel expenses. These include any costs for nights spent at hotels, gas, packaging, storing, and crating.

2. Fill out Form 3903. On Line 1, include costs for packaging, crating and moving goods, and storage costs for up to 30 days.

3. On Line 2, include the cost of one trip per person to move from your old home to the new home. A family does not have to travel at the same time, but is limited to one trip per person. Do not include house-hunting expenses. If driving your own automobile, actual expenses are deductible if you keep the receipts, or you may deduct at a rate of 24 cents per mile.

4. Fill out the rest of Form 3903.

5. Attach Form 3903 to Form 1040 or Form 1040NR.

Tips & Warnings

• Tax law is subject to frequent changes.

References

• IRS: Form 3903
• IRS: Form 1040