Publication 521 - Moving Expenses - 2011 (Page 12 of 19) in pdf

Instead, enter the storage fees (after the reduction for the

You cannot deduct moving expenses on Form

1040EZ or Form 1040A.

part that is allocable to excluded income) on Form 1040,

line 26, and enter “Storage” on the dotted line next to the

CAUTION

amount.

When To Deduct Expenses

If you meet the special rules for members of the Armed

Forces, see

How to complete Form 3903 for members of

You may have a choice of when to deduct your moving

the Armed Forces

under Members of the Armed Forces,

expenses.

later.

Expenses not reimbursed. If you were not reimbursed,

Completing Form 3903. Complete Worksheet 1, earlier,

deduct your moving expenses in the year you paid or

or the Distance Test Worksheet in the instructions for Form

incurred the expenses.

3903 to see whether you meet the distance test. If so,

complete lines 1 through 3 of the form using your actual

Example. In December 2010, your employer trans-

ferred you to another city in the United States, where you

expenses (except, if you use your own car, you can figure

still work. You are single and were not reimbursed for your

expenses based on the standard mileage rate, instead of

moving expenses. In 2010, you paid for moving your furni-

actual amounts for gas and oil). Enter on line 4 the total

ture and deducted these expenses on your 2010 tax re-

amount of your moving expense reimbursement that was

turn. In January 2011, you paid for travel to the new city.

excluded from your wages. This excluded amount should

You can deduct these additional expenses on your 2011

be identified on Form W-2, box 12, with code P.

tax return.

Expenses greater than reimbursement. If line 3 is

Expenses reimbursed. If you are reimbursed for your

more than line 4, subtract line 4 from line 3 and enter the

expenses and you use the cash method of accounting, you

result on line 5 and on Form 1040, line 26. This is your

can deduct your expenses either in the year you paid them

moving expense deduction.

or in the year you received the reimbursement. If you use

Expenses equal to or less than reimbursement. If

the cash method of accounting, you can choose to deduct

line 3 is equal to or less than line 4, you have no moving

the expenses in the year you are reimbursed even though

expense deduction. Subtract line 3 from line 4 and, if the

you paid the expenses in a different year. See

Choosing

result is more than zero, include it as income on Form

when to

deduct, next.

1040, line 7.

If you deduct your expenses and you receive the reim-

bursement in a later year, you must include the reimburse-

ment in your income on Form 1040, line 21.

Where to deduct. Deduct your moving expenses on

Form 1040, line 26. The amount of moving expenses you

Choosing when to deduct. If you use the cash method

can deduct is shown on Form 3903, line 5.

of accounting, which is used by most individuals, you can

Table 2. Reporting Your Moving Expenses and Reimbursements

IF your Form W-2 shows...

AND you have...

THEN...

your reimbursement reported only

moving expenses greater than the

file Form 3903 showing all allowable

in box 12 with code P

amount in box 12

expenses* and reimbursements.

your reimbursement reported only

moving expenses equal to the amount

do not file Form 3903.

in box 12 with code P

in box 12

your reimbursement divided

moving expenses greater than the

file Form 3903 showing all allowable

between box 12 and box 1

amount in box 12

expenses,* but only the

reimbursements reported in box 12 of

Form W-2.

your entire reimbursement reported

moving expenses

file Form 3903 showing all allowable

as wages in box 1

expenses,* but do not show any

reimbursements.

no reimbursement

moving expenses

file Form 3903 showing all allowable

expenses.*

* See

Deductible Moving

Expenses, earlier, for allowable expenses.

Page 12

Publication 521 (2011)

Publication 521 - Moving Expenses - 2011 Page 12

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