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Form 3903

Tax Year 2012

Moving Expenses Deduction
This worksheet is used to calculate the moving expense deduction for a move by the taxpayer related to the start of work at a new job location.

 

Eligibility to Deduct Moving Expenses
The taxpayer can deduct moving expenses if he or she meets all of the following requirements:

  1. The move is closely related to the start of work,
  2. The taxpayer meets the distance test, and
  3. The taxpayer meets the time test.

 

If the new workplace is outside the United States or its possessions, the taxpayer must be a U.S. citizen or resident alien to deduct the moving expenses.

 

See Form 3903 Qualifications for details on the requirements and definitions related to the tests above. Different tests apply to retirees or survivors who move to the United States from living abroad.

 

Whose Expenses Are Deductible
The taxpayer can deduct the moving expenses for all household members moving from the taxpayer's former home to the taxpayer's new home.

 

What Expenses Are Deductible
If the taxpayer is eligible to deduct moving expenses, the taxpayer can deduct reasonable expenses (defined below) of both of the following:

  1. Those to move household goods and personal effects, and
  2. Those to travel, including lodging, but not meals, for travel to the new home.

 

Reasonable Expenses
The expenses must be reasonable for the circumstances of the move to be deductible.

 

Nondeductible Expenses
The following expenses are not deductible:

  • Any part of the purchase price of the new home, or any expenses of buying or selling a home
  • Car tags or driver's licenses
  • Expenses of entering into or breaking a lease
  • Home improvements to help sell a home
  • Loss on the sale of a home
  • Losses from disposing of memberships in clubs
  • Meals
  • Mortgage penalties
  • Pre-move house hunting expenses
  • Real estate taxes
  • Refitting of carpet or draperies
  • Return trips to the former residence, even if for the purposes of moving
  • Security deposits, including amounts given up to move
  • Storage charges except those incurred in transit or for a foreign move
  • Any deduction that has been taken as a business expense

 

Recordkeeping
The taxpayer must maintain accurate records of moving expenses, such as receipts, bills, cancelled checks, credit card statements, and mileage logs. Also, Form W-2s and statements of reimbursement for the taxpayer's employer should be kept.

 

For more details on this form, see IRS Pub. 521, Moving Expenses, and IRS 2012 Form 3903 with accompanying directions.

Directions for Worksheet
Directions for entering information into the Form 3903 worksheet are as follows:
Distance Test
First Line Enter the number of miles from the taxpayer's old home to the taxpayer's new workplace.
Second Line Enter the number of miles from the taxpayer's old home to the taxpayer's old workplace.
Armed Forces Checkbox Check the box if the taxpayer is a member of the Armed Forces, and the move was a permanent change of station, including a move in connection with and within one year of the taxpayer's retirement or other termination of active duty.

 

If this checkbox applies, leave the first and second lines above blank.

Expense Information
Transportation and Storage of Household Goods Enter the reasonable expenses the taxpayer paid for transportation and storage of household goods and personal effects. Include car expenses unless the standard mileage rate is used as defined below.

 

Do not include the value of moving services provided by the government if the taxpayer is a member of the Armed Forces.

 

Move Within U.S.
If the taxpayer moves within or to the United States or one of her possessions, include the amount the taxpayer paid to pack, crate, and move household goods and personal effects. The taxpayer may also include the amount the taxpayer paid to store and insure household goods and personal effects within any period of 30 days in a row after the items were moved from the former home and before they were delivered to the new home.

 

Move Outside U.S.
If the taxpayer moves outside the United States or one of her possessions, include the amount the taxpayer paid to pack, crate, move, store, and insure the household goods and personal effects. Also, include the amount the taxpayer paid to move personal effects to and from storage and to store them for all or part of the time the new workplace continues to be the main job location.

Mileage of Own Car Enter the mileage of the taxpayer's own car used for transporation during the move for the tax year.

 

Standard Mileage Rate
The standard milegae rate for moving expenses in 2012 is 23 cents per mile for the entire year.

 

If the taxpayer and/or members of the household use(s) their own vehicle(s), the expenses may be calculated by either of the following two methods:

  • Actual out-of-pocket expenses for gas and oil, or
  • Mileage at the rates listed above.

 

The taxpayer may add parking fees and tolls to the amount claimed under either method.

 

Do not include any amounts for general repairs, maintenance, insurance, or depreciation of the vehicle. These expenses are not deductible.

Travel and Lodging Incurred During Move Enter the reasonable expenses and/or mileage (defined below) the taxpayer paid to travel from the former home to the new home, including transportation and lodging.

 

 

Include the following expenses:

  • Expenses for lodging within one day after the taxpayer could no longer stay in his or her former home and expenses incurred on the day the taxpayer arrives at the new home.
  • Expenses for each household member, even if they do not all travel together, however, only include expenses for one trip per household member.

Also, include only those costs one would pay to travel the shortest, most direct route available by conventional transportation. Any additional expenses for unnecessary stopovers or side trips are not deductible.

 

Do not include value of transportation and lodging services provided by the government, if the taxpayer is a member of the Armed Forces

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