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REPORT MILEAGE FOR MOVING EXPENSES TAX DEDUCTION HOW TO

If Line 3 is less than Line 4, subtract Line 4 from Line 3 to get your total moving expense deduction.

If Line 3 is more than Line 4, you can’t deduct any moving expenses.

Line 5 is where you figure out if your expenses are tax deductible.

You can find this number on your W2 form.

Line 4 is where you enter any government reimbursements you received for your move.

Line 3 is where you add the totals from Line 1 and Line 2 together.

Line 2 is where you list all the travel expenses you incurred while moving from your former home to your new home, including gas, parking, and lodging (but excluding meals and food).

Line 1 is where you list your total transportation and storage costs, including anything you paid to pack, crate, or move your items.

REPORT MILEAGE FOR MOVING EXPENSES TAX DEDUCTION HOW TO

Here’s a quick overview of how to complete IRS Form 3903: Form 3903įorm 3903 is a rather short form consisting of only five lines, so it’s fairly simple to fill out compared to other tax documents. This deduction reduces your taxable income for the year, and you can claim it even if you take the standard deduction. You’ll need to fill out IRS Form 3903 and attach it to your federal tax return to claim the moving expenses tax deduction. Make sure to get the assistance you need to move all of your belongings safely into your new home by clicking below! Get Started How to claim the moving expenses deduction

However, you still add on your actual expenses for tolls and parking fees. Standard mileage rate: With this method, you use the standard mileage rate-which is currently $0.16-to get reimbursed for gas and oil.Actual expenses: With this method, you keep a tally of all your out-of-pocket expenses for gas, oil, parking fees, and tolls.If you use your car to move, you can claim expenses one of two ways: Driving your car to your new home (including gas, oil, tolls, and parking fees).Taking a plane, bus, train, or other forms of transportation to get to your new home.Insuring your items until they get to your new home.Storing your items during transit or international move.Packing and transporting your household items to your new home.In general, military personnel can claim any moving costs associated with: These include:Įxact requirements vary by state, but in most cases, you must have moved due for work and be able to pass the distance and time test (which we’ll talk about next). Which states allow a moving expense deduction?Īlthough the TCJA suspended the federal moving expense deduction for most taxpayers, a few states will let you deduct moving expenses on your state tax return.

TIP: Still not sure if you qualify for the moving expenses tax deduction? The IRS has an online test you can take to find out. But you must claim the deduction in the tax year you move. If you qualify, you can deduct expenses for yourself, as well as your spouse and dependents. Move from your last post to your home (or somewhere else in the U.S.) within one year of your active duty status ending.Move from one permanent post to another.Move from your home to your first active duty post.So at present, most people no longer qualify for the deduction.Ī “permanent change of station” means that you’re in the military and are ordered to: This rule will be in effect from 2018 to 2025 it’s unclear what the law will be after that. Unfortunately, the moving expense tax deduction is only available to members of the US armed forces who relocate because of a military order or permanent change of station.