Square Cow Moovers - Your Professional Moving Company

Tax season is in full swing like a square dance. While you’re gathering up documents and receipts don’t forget the ones related to your recent move. There’s a chance your moving expenses are tax deductible.

Which Moving Expenses Are Tax Deductible?

Most, but not all, expenses related to a move can be deducted from your taxes.

You won’t have to list each item individually, but you will need proof of how much was paid in case you get audited.

What Qualifications Do You Have to Meet to Deduct Moving Expenses?

Only those that moved for work purposes are able to deduct moving expenses from their taxes. This applies to both employees and people that are self-employed. However, there are a few more criteria you have to meet.

There are exceptions for certain individuals. If you are a member of the Armed Forces that had to move because of a permanent change in station or military order you don’t have to meet the Distance Test and Time Test requirements. Additionally, you don’t have to pass the time test under other circumstances including disability, death and involuntary separation.

Where Do You Deduct Moving Expenses?

You can figure out your total moving expenses deduction using the IRS 3903 form. If you moved more than once in the tax year use a separate 3903 form for each move. Below are the steps you need to follow on the form:

Step #1 – Add the total expenses for storing and transporting your things as well as related travel expenses in lines 1 and 2.

Step #2 – Add lines 1 and 2 together for your total moving expenses.

Step #3 – Next input the amount that your employer paid or reimbursed you for in relation to the moving expenses on line 4.

Step #4 – Now subtract line 4 from line 3 to get your moving expense deduction. If line 4 is more than 3 then you don’t qualify for a deduction.

In addition to filling out the 3903 form you will also need to enter the moving expense deduction on line 26 of the 1040 form or line 26 of the 1040NR form.