How to Use Form 3903 to Claim Moving Expenses Deduction

If  you moved to a new location due to job change or job location change, you may be able to deduct certain moving expenses.

Step 1: Determine whether you are qualified to deduct moving expenses.

You can deduct moving expenses if you meet all three tests below.

1. Your move is closely related to the start of work.

Generally, you are considered to meet this test if:

• You moved within one year from the date you started your new job and
• The distance from your new home to the new job location is less than the distance from your old home to the new job location.

2. Distance test.

You meet this test if the distance from your old home to the new job location is 50 miles more than the distance from your old home to your old job location.

3. Time test.

For employees: You must work full time for at least 39 weeks after you move to the new location.

For self- employed person: You must work full time for at least 39 weeks during the first 12 months and 78 weeks during the first 24 months after you move to the new location.

If you paid moving expenses but have not met the time test by the time you file your return, you can still deduct moving expenses if you expect that you will meet the time test later. If you don't deduct moving expenses in the year you paid, you can file an amended return, Form 1040X, to deduct the expenses.

There are a few exceptions to these three tests. If you don't meet the tests stated above, you can check Publication 521 to see if you meet any of these exceptions.

Step 2: Collect information for moving expenses deduction.

1. Document of your moving expenses, such as receipts, invoices and credit card statements.

2. Form W-2.

Step 3: Figure out your deductible moving expenses.

Use the worksheet below to figure your deductible moving expenses.

Step 4: Report your moving expenses.

If the total deductible moving expenses you figured on Step 3 is more than 0, complete Form 3903 and attach it to Form 1040 (or Form 1040NR) to claim your moving expenses deduction.

If the total deductible moving expenses you figured on Step 3 is 0 or less, you don't have any deductible moving expenses.  

For more information, please see IRS Publication 521.

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