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Tax Preparation online help - Tax Deduction for  Moving Expenses List

The tax deduction for moving expenses list is allowed for the following list of moving expenses.
  • Travel moving expenses (including lodging) for an employee or self employed person and his or her family to the new residence; and

     

  • Moving expenses for moving household goods and other personal effects.

Examples of moving expenses allowable for tax deduction are:

  • car expenses (including parking, tolls, etc.. if you are moving by car)
  • cost of connecting and disconnecting utilities because of moving household appliances and personal effects.
  • costs of storing and insuring household goods (within 30 days of your move)
  • Costs of transporting household goods
  • packing and crating costs
  • transportation and lodging for your and your family (including the expenses on the day you arrive)

The tax deduction for moving expenses that fall into the above two categories is unlimited. Moving expenses that qualify for tax deduction for moving expenses that are not paid or reimbursed by the taxpayer's employer are allowable as a tax deduction for moving expenses in calculating adjusted gross income (AGI).

Therefore, moving expenses are no longer an itemized tax deduction. Reimbursement or payment of moving expenses by an employer is excludable from gross income of the employee, and is not included in the employee's Form W-2.

IRS Tax Forms

The IRS tax form for moving expenses is IRS tax form 3903. Use this IRS tax form to report moving expenses if your move was within or to the United States or its possessions (e.g., U.S. Virgin Islands, Puerto Rico, American Samoa, etc.).

Tax deduction for moving expenses are not allowed for moving expenses for:
  • the cost of meals;
  • the cost of pre-move house-hunting trips;
  • the cost of temporary living expenses;
  • the costs incident to the sale or lease of the old residence, including settling of an unexpired lease; and
  • the costs incident to the purchase or lease of a new residence.
  • car registration fees
  • driver's license fees
  • mortgage penalties
  • real estate taxes
  • security deposits
  • storage charges
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