Claiming Moving Expenses

Moving expenses are reported on IRS Form 3903, Moving Expenses, which is one of the simpler and more self-explanatory tax forms that you will run across. Moves to a location outside the U.S. are also reported on Form 3903. If you move to more than one location during the year, you'll need to fill out two forms.

Either of these forms will ask you to add up your total moving expenses in the two categories of deductible expenses described above. Then, you will subtract any reimbursements you receive from your employer that were not included in Box 1 of your W-2 form along with your other taxable wages. The amount of these reimbursements, if any, should have been shown in Box 12 of your W-2 form and marked with Code P.

If your employer's payments were higher than your deductible expenses, you must report the excess as income from wages, salaries, or tips on Line 7 of your 1040 Form.

If your expenses were higher than any reimbursements you received, the difference will be your deductible moving expenses, which are carried over to Line 26 of your 1040 Form. You cannot claim moving expenses on either Form 1040EZ or 1040A.

Planning Tools You can download Form 3903 and Form 1040 to aid in your financial planning efforts.