Publication 516 - U.s. Government Civilian Employees Stationed Abroad (Page 6 of 10) in pdf

Documentary evidence generally is re-

Form W-2 are not considered reimburse-

The costs of moving household goods in-

quired to support all lodging expenses

ments.)

clude the reasonable expenses of moving

while traveling away from home. It is

household goods and personal effects to and

RECORDS

•

If you claim car expenses, you use the

also required for any other expense of $75 or

from storage. For a foreign move, the costs also

standard mileage rate.

more, except transportation charges if the evi-

include expenses of storing the goods and ef-

dence is not readily available. Documentary evi-

fects for part or all of the period that your new job

dence is a receipt, paid bill, or similar proof

location abroad continues to be your main job

sufficient to support an expense. It ordinarily will

location.

Other Deductible

be considered adequate if it shows the amount,

Expenses must be reasonable. You can

date, place, and essential business character of

Expenses

deduct only those expenses that are reasonable

the expense.

for the circumstances of your move. For exam-

ple, the costs of traveling from your former home

A canceled check by itself does not

In addition to deductible business expenses,

to your new one should be by the shortest, most

prove a business cost. You must have

you may be entitled to deduct certain other ex-

direct route available by conventional transpor-

other evidence to show that the check

penses.

CAUTION

tation.

was used for a business purpose.

Moving Expenses

Members of your household. A member

Your records must be timely. Record the

of your household includes anyone who has

elements for the expense in your account book

both your former home and new home as his or

If you changed job locations or started a new

or other record at or near the time of the ex-

her home. It does not include a tenant or em-

job, you may be able to deduct the reasonable

pense. A timely-kept record has more value than

ployee unless you can claim that person as a

expenses of moving yourself, your family, and

statements prepared later when, generally,

dependent.

your household goods and personal effects to

there is a lack of accurate recall.

your new home. However, you cannot deduct

Retirees. You can deduct the costs of moving

Confidential information. You do not need to

any expenses for which you received a tax-free

to the United States when you permanently re-

put confidential information relating to an ele-

allowance as a U.S. Government employee.

tire if both your former main job location and

ment of a deductible expense (such as the

To deduct moving expenses, your move

former home were outside the United States and

place, business purpose, or business relation-

must be closely related to the start of work and

its possessions. You do not have to meet the

ship) in your account book, diary, or other re-

you must meet the distance test and the time

time test described earlier.

cord. However, you do have to record the

test.

information elsewhere at or near the time of the

Closely related to the start of work. The

Survivors. You can deduct moving expenses

expense and have it available to fully prove that

move must be closely related, both in time and in

for a move to the United States if you are the

element of the expense.

place, to the start of work at the new location. In

spouse or dependent of a person whose main

general, you must have incurred your moving

job location at the time of death was outside the

How To Report

expenses within one year from the time you first

United States and its possessions. The move

Business Expenses

report to your new job or business.

must begin within 6 months after the decedent’s

A move generally is not considered closely

death. It must be from the decedent’s former

As a U.S. Government employee, your business

related in place to the start of work if the distance

home outside the United States, and that home

expense reimbursements are generally paid

from your new home to the new job location is

must also have been your home. You do not

under an accountable plan and are not included

more than the distance from your former home

have to meet the time test described earlier.

in your wages on your Form W-2. If your ex-

to the new job location. A move that does not

penses are not more than the reimbursements,

How to report moving expenses. Use Form

meet this requirement may qualify if you can

you do not need to show your expenses or

3903 to report your moving expenses and figure

show that you must live at the new home as a

reimbursements on your return.

your allowable deduction. Claim the deduction

condition of employment, or you will spend less

However, if you do not account to your em-

as an adjustment to income on Form 1040. (You

time or money commuting from the new home to

ployer for a travel advance or if you do not return

cannot deduct moving expenses on Form

the new job.

any excess advance within a reasonable period

1040A or Form 1040EZ.)

Distance test. Your new main job location

of time, the advance (or excess) will be included

must be at least 50 miles farther from your for-

in your wages on your Form W-2.

Reimbursements. Generally, you must in-

mer home than your old main job location was. If

clude reimbursements of, or payments for, non-

If you are entitled to a reimbursement

you did not have an old job location, your new

deductible moving expenses in gross income for

from your employer but you do not

job location must be at least 50 miles from your

the year paid. You also must include in gross

claim it, you cannot deduct the ex-

CAUTION

former home.

income reimbursements paid to you under a

penses to which that unclaimed reimbursement

nonaccountable plan. However, there is an ex-

Time test. If you are an employee, you must

applies.

ception for the tax-free foreign areas allowances

work full time for at least 39 weeks during the

Form 2106 or Form 2106-EZ. You must com-

described earlier under Allowances, Differen-

first 12 months after you arrive in the general

plete Form 2106 or 2106-EZ to deduct your

tials, and Other Special Pay.

area of your new job location.

expenses. Also, if your actual expenses are

more than your reimbursements, you can com-

Additional information. For additional infor-

Deductible moving expenses. Moving ex-

plete Form 2106 or 2106-EZ to deduct your

mation about moving expenses, see Publication

penses that can be deducted include the rea-

excess expenses. Generally, you must include

521.

sonable costs of:

all of your expenses and reimbursements on

•

Moving household goods and personal ef-

Other Itemized Deductions

Form 2106 or 2106-EZ and carry your allowable

fects (including packing, crating, in-transit

expense to Schedule A (Form 1040). Your al-

storage, and insurance) of both you and

lowable expense is then generally subject to the

You may be able to claim other itemized deduc-

members of your household, and

2%-of-adjusted-gross-income limit.

tions not connected to your employment.

•

Transportation and lodging for yourself

Form 2106-EZ. You may be able to use

Contributions. You can deduct contributions

and members of your household for one

Form 2106-EZ instead of the more complex

to qualified organizations created or organized

trip from your former home to your new

Form 2106 for reporting unreimbursed em-

in or under the laws of the United States or its

home (including costs of getting pass-

ployee business expenses. You can use Form

possessions. You cannot deduct contributions

ports).

2106-EZ if you meet both of the following condi-

you make directly to foreign organizations (ex-

tions.

cept for certain Canadian, Israeli, and Mexican

•

The cost of your meals is not a deducti-

You are not reimbursed by your employer

charities), churches, and governments. For

ble moving expense.

for any expenses. (Amounts your em-

more information, see Publication 526, Charita-

ployer included in your wages on your

ble Contributions.

CAUTION

Publication 516 (April 2012)

Page 6

Publication 516 - U.s. Government Civilian Employees Stationed Abroad Page 6

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