The following discussions explain how to report your moving expenses and any reimbursements or allowances you received for your move.

Form 3903. Use Form 3903 to report your moving expenses.

Where to deduct. Deduct your moving expenses on line 26 of Form 1040. The amount of moving expenses you can deduct is shown on line 5 of Form 3903.

You cannot deduct moving expenses if you file Form 1040A or Form 1040EZ.

Reimbursements. If you received an advance, allowance, or reimbursement for your allowable moving expenses, how you report this amount and your expenses depends on whether the reimbursement was paid to you under an accountable plan or a nonaccountable plan.

For more information on reimbursements, see Publication 521.

When To Deduct Expenses

If you were not reimbursed, deduct your allowable moving expenses either in the year you had them or in the year you paid them.

Example. In December 1998, your employer transferred you to another city in the United States, where you still work. You are single and were not reimbursed for your moving expenses. In 1998 you paid for moving your furniture. You deducted these expenses in 1998. In January 1999, you paid for travel to the new city. You can deduct these additional expenses in 1999.

Reimbursed expenses. If you are reimbursed for your expenses, you can also deduct your allowable expenses in the year you had them or paid them. If you use the cash method of accounting, you can choose to deduct the expenses in the year you are reimbursed even though you paid the expenses in a different year. For more information, see Publication 521.

Choosing when to deduct. If you use the cash method of accounting, which is used by most individuals, you can choose to deduct moving expenses in the year your employer reimburses you if:

1. You paid the expenses in a year before the year of reimbursement, or
2. You paid the expenses in the year immediately after the year of reimbursement but by the due date, including extensions, for filing your return for the reimbursement year.

How to make the choice. You can choose to deduct moving expenses in the year you received reimbursement by taking the deduction on your return, or amended return, for that year.

You cannot deduct any moving expenses for which you received a reimbursement that was excluded from your income. (Reimbursements are discussed in Publication 521.)

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