For tax years 2018 and later: The deduction for moving expenses is only available to active military moving due to a permanent change of station.
Tax years 2018 and forward
For tax years beginning after 2017, moving expenses can be deducted if the taxpayer is a member of the Armed Forces on active duty and moved because of a permanent change of station. A permanent change of station includes the following:
- A move from the taxpayer's home to their first active duty post;
- A move from a permanent duty post to another;
- A move from the taxpayer's last duty post to their home or a closer point within the U.S. (Move must occur within 1 year of end of active duty or as allowed under the Joint Travel Regulations.)
Refer to the Form 3903 instructions or Publication 521 to determine what expenses qualify for the deduction.
If the amount of excludible moving expense reimbursements the taxpayer was paid by the government (2018 and forward) or their employer (2017 and prior) was greater than the expenses, the difference is taxable income and will be included on their tax return under Wages, salaries, tips, etc. These reimbursements are indicated on the W-2 in Box 12 with code P.
To enter moving expenses for tax years 2018 and later in TaxSlayer Pro, from the Main Menu of the tax return (Form 1040) select:
- Adjustments
- Moving Expenses for Members of Armed Forces (3903) - Select New and if prompted Taxpayer or Spouse.
- Answer YES to the question confirming the taxpayer qualifies. (Note that answering No will display the mileage entry fields, but they should only be completed if they have relevance for a state moving expense deduction.)
- Transport & Storage of Household Goods - Enter the amount paid for storage and transportation of the household goods.
- Travel Expenses - Enter the amounts paid for travel and lodging. Travel can be calculated using either actual out-of-pocket expenses for gas and oil or standard mileage, with parking fees and tolls added separately. Do not include the cost of meals nor expenses paid for by someone else.
- Amount Paid By Government for Your Move - Enter the amount the government paid towards the move, if any. This amount is indicated on Form W-2 in Box 12 with code P and isn't included in gross wages.
- Description of Move - Enter a brief description (30 characters maximum).
Tax years 2017 and prior
If a taxpayer moved during the year due to a change in their job or business location, or because they started a new job or business, they may be able to deduct moving expenses they incurred that were not reimbursed by their employer. To qualify for the moving expense deduction, the taxpayer must satisfy two tests.
- Distance Test - The taxpayer's new job must be at least 50 miles farther from their old home than their old job location was from their old home. If the taxpayer had no previous workplace, the new job must be at least 50 miles from their old home.
- Time Test - If the taxpayer is an employee, they must work full-time for at least 39 weeks during the first 12 months right after arriving in the general area of their new job. If the taxpayer is self-employed, they must work full time for at least 39 weeks during the first 12 months and for a total of at least 78 weeks during the first 24 months after arriving in the general area of their new work location. There are exceptions to the time test in cases of death, disability, and involuntary separation. See the Form 3903 Instructions for a list of all exceptions to the time test.
If the taxpayer is a member of the armed forces and their move was due to a permanent change of station, the distance and time tests do not apply. Moving expenses are figured on Form 3903 and deducted as an adjustment to income on Form 1040. Moving expenses that are reimbursed by the taxpayer's employer are not deductible.
If the amount the taxpayer was paid towards expenses was greater than the expenses, the difference is taxable income and will be included on their tax return under Wages, salaries, tips, etc. These reimbursements are indicated on the W-2 in Box 12 with code P.
To enter moving expenses for tax years 2017 and earlier in TaxSlayer Pro, from the Main Menu of the tax return (Form 1040) select:
- Adjustments
- Moving Expenses (3903) - Select New and if prompted Taxpayer or Spouse.
- Do either of the following:
Check the check box for "Meets or is not required to meet time and distance tests",
or
Enter the number of miles from the old home to the new work place and the number of miles from the old home to the old work place. - Transport & Storage of Household Goods - Enter the amount paid for storage and transportation of the household goods.
- Travel Expenses - Enter the amounts paid for travel and lodging. Travel can be calculated using either actual out-of-pocket expenses for gas and oil or standard mileage, with parking fees and tolls added separately. Do not include the cost of meals nor expenses paid for by someone else.
- Amount Paid By Employer for Your Move - Enter the amount the employer paid towards the move, if any. This amount is indicated on Form W-2 in Box 12 with code P and isn't included in gross wages.
- Description of Move - Enter a brief description (30 characters maximum).
Note: This is a guide on entering Moving Expenses into the TaxSlayer Pro program. This is not intended as tax advice.
Additional Information: