is used to calculate your moving expenses to a new principal place of work within the United States or outside of the United States. There are two tests that need to be met. The first test is the 50 mile test. The distance between your new job location and your former home must be at least 50 miles more than the distance between your former home and your former job location. The second test is that you must be a full-time employee for 39 weeks during the 12-month period immediately following your arrival. The 39 weeks of work does not have to be with the same employer. If you are self-employed, you must work full-time for 78 weeks during the 24-month period after you move.
What you can deduct as moving expenses is pretty limited. You can deduct the reasonable costs of transportation and lodging for you and your family while traveling to your new residence. You can deduct the cost of moving and storage of your household goods and personal effects. For automobile expenses you may either deduct your actual gas and oil expenses or you may deduct 23.5 cents per mile.
Expenses that you may NOT deduct include: meals, temporary living expenses, expenses of selling or leasing of a home, pre-move house hunting expenses and loss on the sale of your old home.
If your employer reimbursed you for any of your moving expenses, enter the amount on Line 4
of Form 3903
. The amount of employer reimbursement is shown in box 12 of your W-2 with the code "P" next to the amount.
Form 3903 Tax Tips
- The cost of transporting your pets to your new home is deductible.
- If your employer sends you on a temporary work assignment of one year or less you may be able to deduct temporary living expenses, meals and other travel expenses as an unreimbursed job expense on Form 2106 and Schedule A.
- If you are starting your first job or returning to the workforce, you can deduct your moving expenses if you meet the other tests.