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Form 3903, Moving Expenses
Moving The moving expense deduction is computed on Form
Expenses 3903. See the Reporting Moving Expenses and Reimburse-
ments chart, below, to determine how to figure the de-
duction for qualified expenses that exceed reimburse-
Deductible Moving Expenses ments and allowances (including dislocation, tempo-

• The cost of transportation and storage (up to 30 days af- rary lodging, temporary lodging expense, or move-in
ter the move) of household goods and personal effects. housing allowances that are excluded from gross in-
• Travel, including lodging, from the old home to the come). The moving expense deduction is carried from
new home. Travel is limited to one trip per person. Form 3903 to line 26, Schedule 1 (Form 1040), as an ad-
However, each member of the household can move justment to income. If you do not have any out-of-pock-
separately and at separate times. If the taxpayer drives et unreimbursed moving expenses, there is no moving
his or her own vehicle, expenses can be figured either expense deduction allowed.
using actual out-of-pocket expenses for gas and oil Reporting Moving Expenses and Reimbursements
(but not depreciation), or the standard mileage rate IF Form W-2 shows… AND you have… THEN…
for moving (for 2019, 20¢ per mile), plus parking fees reimbursement moving expenses file Form 3903 showing
and tolls. reported only in box 12 greater than the all allowable expenses
Not deductible. Cost of meals while traveling, tempo- with code P amount in box 12 and reimbursements.
rary living expenses, lavish or extravagrant lodging, or reimbursement moving expenses do not file Form 3903.
house hunting expenses before or after the move. reported only in box 12 equal to the amount
with code P in box 12
reimbursement moving expenses file Form 3903
Nondeductible Expenses divided between box greater than the showing all allowable
12 and box 1 amount in box 12 expenses, but only
The following expenses are not deductible as moving the reimbursements
expenses. reported in box 12 of
• Any part of the purchase price of a new home. Form W-2.
• Car tags or driver’s license. entire reimbursement moving expenses file Form 3903 showing
• Expenses of entering into or breaking a lease. reported as wages in all allowable expenses
• Loss on home sale. box 1 but do not show any
• Mortgage penalties reimbursements.
• Pre-move househunting trips. no reimbursement moving expenses file Form 3903 showing
• Real estate taxes. all allowable expenses.
• Security deposits.

Reimbursed Moving Expenses
Eligible moving expenses reimbursed by the govern-
ment are excluded from your taxable wages. The amount
of excluded moving expenses is reported in box 12, Form
W-2 under code “P.” Do not deduct any expenses for mov- Contact Us
ing services that were provided by the government. Also, There are many events that occur during the year that can affect
do not deduct any expenses that were reimbursed by an your tax situation. Preparation of your tax return involves sum-
allowance not included in income. marizing transactions and events that occurred during the prior
year. In most situations, treatment is firmly established at the
Additional moving expenses that are not reimbursed time the transaction occurs. However, negative tax effects can
are eligible for a deduction on Schedule 1 (Form 1040) if be avoided by proper planning. Please contact us in advance
they otherwise qualify. if you have questions about the tax effects of a transaction or
event, including the following:
• Pension or IRA distributions. • Retirement.
• Significant change in income or • Notice from IRS or other
deductions. revenue department.
• Job change. • Divorce or separation.
This brochure contains general information for taxpayers and • Marriage. • Self-employment.
should not be relied upon as the only source of authority. • Attainment of age 59½ or 70½. • Charitable contributions
Taxpayers should seek professional tax advice for more information. • Sale or purchase of a business. of property in excess of
• Sale or purchase of a residence $5,000.
Copyright © 2019 Tax Materials, Inc. or other real estate.
All Rights Reserved

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