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 ProWeb, from the Federal Section of the tax return (Form 1040) select:
- Deductions
- Adjustments
- Moving Expenses
- The two mileage fields and the two check boxes indicating the taxpayer qualified as either being employed or self-employed are not relevant for federal purposes. Only complete them if they have relevance to a moving expense deduction in a state return you are completing.
- Check here if this move qualifies as a military permanent change of address move - Check this check box if true. Note that no deduction will be allowed if unchecked.
- Enter the total paid for storage and transportation of the household goods.
- 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.
- Enter the amounts paid for lodging and parking fees and tolls.
- Did you use your own vehicle for your moving trip? - If yes, select Yes then enter the total mileage and the cost of gas and oil. (The program will use these numbers to determine whether out-of-pocket or standard mileage yields the best result.) If the taxpayer hasn't got this information, the answer can be Yes or No.
- Enter the total of any additional travel expenses, e.g., the travel costs for family members who traveled separately.
- Check here if the reimbursements are for the SPOUSE - This check box will show on a MFJ return. If the W-2 reimbursements previously indicated are on a spouse W-2, check this box.
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 ProWeb, from the Federal Section of the tax return (Form 1040) select:
- Deductions
- Adjustments
- Moving Expenses
- Enter the number of miles from the old home to the new workplace and the number of miles from the old home to the old workplace.
- Check either the employee check box or self-employed check box indicating that the taxpayer meets the time test.
- Enter the Total paid for storage and transportation of the household goods.
- 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.
- Enter the amounts paid for lodging and parking fees and tolls.
- Did you use your own vehicle for your moving trip? - If yes, select Yes then enter the total mileage and the cost of gas and oil. (The program will use these numbers to determine whether out-of-pocket or standard mileage yields the best result.) If the taxpayer hasn't got this information, the answer can be Yes or No.
- Enter the total of any additional travel expenses, e.g., the travel costs for family members who traveled separately.
- Check here if the reimbursements are for the SPOUSE - This check box will show on a MFJ return. If the W-2 reimbursements previously indicated are on a spouse W-2, check this box.
Note: This is a guide on entering Moving Expenses into TaxSlayer ProWeb. This is not intended as tax advice.
Additional Information: