If you move to a different location to start a new job or
self-employment, you may be able to deduct part of your moving
expenses. The deduction is available whether you claim standard or
itemized deductions, and whether you own or rent either home. To
claim your unreimbursed expenses, use Form 3903.
Your move must meet certain requirements to qualify for the
You can claim the moving expenses deduction even before you meet
the time test, if you expect to complete the 39-week work period in
the year you're filing, or the year after that for the 78-week work
period. So, for example, if you moved in late 2012, you can claim
the deduction on your 2012 return that you file in 2013, even
though you may not have completed the time test period.
If you fail to complete the work period, but have already
claimed the deduction, you must either:
The time test does not apply if you become disabled or die
before completing the period, or if you're a member of the Armed
Forces and moved because of a permanent change of station. There
are other exceptions for retirees and survivors moving to the U.S.
See IRS Publication 521 for more information.
Provided you meet the tests above, you can deduct reasonable
You may deduct expenses regardless of whether you're moving
within, to or from the U.S. For moves outside the U.S., you can
only expenses for storing your things while you're working at the
workplace outside the U.S.
You cannot deduct expenses that are not directly related to
moving yourself, your family, and your household. So you cannot
Your employer may reimburse you for all or part of your moving
expenses. Your employer may reimburse you for some expenses that
are not deductible, and will likely treat that part of the
reimbursement as wages on your W-2 form. Reimbursement for
deductible expenses is not taxable, but does reduce your deduction
for moving expenses on your return. So how you should treat the
reimbursement on your return depends on how the reimbursement is
reported on your Form W-2.