Form 3903 - Moving Expenses

Federal Form 3903 is used to figure the moving expense deduction for a move related to the start of work at a new principal place of work (workplace). This form is typically used by individuals who have incurred moving expenses due to a job change or a new job.

Who Can File Form 3903: Moving Expenses?

Prior to 2018, Form 3903 was used by individuals who made a qualifying move in a tax year. This included individuals who started a new job, transferred to a new location, or retired from the military. However, since the Tax Cuts and Jobs Act of 2017 (TCJA), the moving expense deduction is only available to members of the Armed Forces on active duty who move due to a military order.

Key Takeaways

• For tax years beginning after 2017, Form 3903 can only be used by members of the military.
• Those with multiple job-related moves must fill out multiple forms.
• A taxpayer's new employment location must be at least 50 miles further than the distance between their home and their old employer.

What Expenses Can Be Deducted?

Qualifying expenses include:

• The cost of boxes, tape, moving blankets, bubble wrap, and other packing necessities
• Rental fees for moving trucks and storage units
• Travel costs, including plane fare, gas or mileage, and hotel costs
• The costs of moving other family members in a separate vehicle

What does it mean when an expense is deductible?

A deductible expense is any money spent that can be taken out of your tax forms.

Why can't everyone file their moving costs as tax deductible?

The 2017 Tax Cuts and Jobs Act changed the rules for moving costs. The law made a singular flat tax rate, and this impacted how moving costs are deducted from federal taxes.

What is Form 3903?

Form 3903 is a government document that helps you figure out your moving expense deduction. It asks for your transportation and travel expenses while moving and then uses your W-2 and a simple moving expenses deduction equation to calculate your moving expenses.