The deduction for moving expenses has been eliminated, except for certain members of the Armed Forces.
- 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.
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 Menu
- Moving Expenses for Members of Armed Forces (3903)
- Select New. If the taxpayer is a member of the Armed Forces and due to a military order moved because of a permanent change of station, select Yes
- Enter applicable moving expenses in the fields provided. Also enter the amount paid by the government for the move and a description of the move.
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.
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 Menu
- Moving Expenses (3903)
- Select New and then select Taxpayer or Spouse
- Enter the number of miles from the taxpayer/spouse's old home to their new work place
- Enter the number of miles from the taxpayer/spouse's old home to their old work place
- Select Ok
- Enter applicable moving expenses in the fields provided. Also enter the amount paid by the employer for the move and a description of the move.
NOTE: This is a guide on entering Moving Expenses into the TaxSlayer Pro program. This is not intended as tax advice.