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IRS.gov Website
Publication 521
taxmap/pubs/p521-004.htm#en_us_publink1000203533

How and When To Report(p11)

rule
This section explains how and when to report your moving expenses and any reimbursements or allowances you received for your move. For a quick overview, see Table 2.
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Form 3903(p11)

rule
Use Form 3903 to figure your moving expense deduction. Use a separate Form 3903 for each move for which you are deducting expenses.
Don't file Form 3903 if all of the following apply. Instead, enter the storage fees (after the reduction for the part that is allocable to excluded income) on Form 1040, line 26, and enter "Storage" on the dotted line next to the amount.
If you meet the special rules for members of the Armed Forces, see How to complete Form 3903 for members of the Armed Forces under Members of the Armed Forces, later.
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Completing Form 3903.(p11)

rule
Complete Worksheet 1 or the Distance Test Worksheet in the instructions for Form 3903 to see whether you meet the distance test. If so, complete lines 1 through 3 of the form using your actual expenses (except, if you use your own car, you can figure expenses based on the standard mileage rate, instead of actual amounts for gas and oil). Enter on line 4 the total amount of your moving expense reimbursement that was excluded from your wages. This excluded amount should be identified on Form W-2, box 12, with code P.
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Expenses greater than reimbursement.(p12)
If line 3 is more than line 4, subtract line 4 from line 3 and enter the result on line 5 and on Form 1040, line 26. This is your moving expense deduction.
taxmap/pubs/p521-004.htm#en_us_publink1000203541
Expenses equal to or less than reimbursement.(p12)
If line 3 is equal to or less than line 4, you have no moving expense deduction. Subtract line 3 from line 4 and, if the result is more than zero, include it as income on Form 1040, line 7.
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Table 2. Reporting Your Moving Expenses and Reimbursements

IF your Form W-2 shows...AND you have...THEN...
your reimbursement reported only in box 12 with code Pmoving expenses greater than the amount in box 12 file Form 3903 showing all allowable expenses* and reimbursements.
your reimbursement reported only in box 12 with code Pmoving expenses equal to the amount in box 12 don't file Form 3903
your reimbursement divided between box 12 and box 1 moving expenses greater than the amount in box 12 file Form 3903 showing all allowable expenses,* but only the reimbursements reported in box 12 of Form W-2.
your entire reimbursement reported as wages in box 1moving expensesfile Form 3903 showing all allowable expenses,* but don't show any reimbursements.
no reimbursementmoving expensesfile Form 3903 showing all allowable expenses.*
* See Deductible Moving Expenses, earlier, for allowable expenses.


taxmap/pubs/p521-004.htm#en_us_publink1000203542

Where to deduct.(p12)

rule
Deduct your moving expenses on Form 1040, line 26. The amount of moving expenses you can deduct is shown on Form 3903, line 5.
EIC
You can't deduct moving expenses on Form 1040EZ or Form 1040A.
taxmap/pubs/p521-004.htm#en_us_publink1000203544

When To Deduct Expenses(p12)

rule
You may have a choice of when to deduct your moving expenses.
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Expenses not reimbursed.(p12)

rule
If you weren't reimbursed, deduct your moving expenses in the year you paid or incurred the expenses.
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Example.(p12)

In December 2015, your employer transferred you to another city in the United States, where you still work. You are single and weren't reimbursed for your moving expenses. In 2015, you paid for moving your furniture and deducted these expenses on your 2015 tax return. In January 2016, you paid for travel to the new city. You can deduct these additional expenses on your 2016 tax return.
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Expenses reimbursed.(p12)

rule
If you are reimbursed for your expenses and you use the cash method of accounting, you can deduct your expenses either in the year you paid them or in the year you received the reimbursement. If you use the cash method of accounting, you can choose to deduct the expenses in the year you are reimbursed even though you paid the expenses in a different year. See Choosing when to deduct next.
If you deduct your expenses and you receive the reimbursement in a later year, you must include the reimbursement in your income on Form 1040, line 21.
taxmap/pubs/p521-004.htm#en_us_publink1000203548
Choosing when to deduct.(p12)
If you use the cash method of accounting, which is used by most individuals, you can choose to deduct moving expenses in the year your employer reimburses you if:
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How to make the choice.(p12)
You choose to deduct moving expenses in the year you received reimbursement by taking the deduction on your return, or amended return, for that year.
EIC
You can't deduct any moving expenses for which you received a reimbursement that wasn't included in your income.