US Internal Revenue Service: p521--1997

8/14/2019 US Internal Revenue Service: p521--1997

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ContentsIntroduction ........................................................ 2

Who Can Deduct Moving Expenses ................ 2Related to Start of Work .................................. 2Distance Test ................................................... 2Time Test ......................................................... 3Members of the Armed Forces ........................ 5

Retirees or Survivors Who Move to the UnitedStates ........................................................ 5

Deductible Moving Expenses ........................... 6Moves Within or to the United States ............. 7Moves Outside the United States .................... 7

Nondeductible Expenses .................................. 8

Tax Withholding and Estimated Tax ................ 8

How To Report ................................................... 9Reimbursements .............................................. 9When To Deduct Expenses ............................. 10

Example: Moving Within the United States .... 12

Example: Moving to a Foreign Country .......... 15

How To Get More Information .......................... 18

Important Reminders

Standard mileage rate. The standard mileage rateallowed for moving expenses is now 10 cents a mile.See Travel by carunder Deductible Moving Expenses.

No deduction allowed for certain moving expenses.You cannot deduct as moving expenses amounts youpay for:

Meals while moving from your old residence to yournew residence,

Travel expenses, meals, and lodging for pre-movehousehunting trips,

Meals and lodging while occupying temporaryquarters, and

Qualified residence sale, purchase, and lease ex-penses.

Distance test. To deduct moving expenses, your newmain job location must be at least 50 miles farther fromyour former home than your old main job location.

Moving expenses no longer an itemized deduction.Allowable moving expenses are no longer an itemizeddeduction. You can deduct these expenses when fig-uring your adjusted gross income.

Reimbursements. If your employer reimburses you foryour allowable moving expenses, your employer shouldexclude these reimbursements from your income. Youcan only deduct allowable moving expenses that your

Department of the TreasuryInternal Revenue Service

Publicat ion 52 1Cat. No. 15040E

MovingExpenses

For use in preparing

1997 Returns

Get f orms and other informat ion faster a nd easier by:COMPUTER

World Wide Web www.irs.ustreas.gov FTP ftp.irs.ustreas.gov IRIS at FedWorld (703) 321-8020

FAX From your FAX machine, dial (703) 368-9694See How To Get More Informationin this publication.


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employer did not reimburse or reimbursed but includedin your income.

Change of address. If you change your mailing ad-dress, be sure to notify the IRS using Form 8822,Change of Address. Mail it to the Internal RevenueService Center for your old address. Addresses for theService Centers are on the back of the form.

IntroductionThis publication explains the deduction of certain ex-penses of moving to a new home because you changed

job locations or started a new job. This explanation in-cludes:

Who can deduct moving expenses,

What moving expenses are deductible,

What moving expenses are not deductible,

Tax withholding and estimated tax, and

How to report your moving expenses.

The publication also illustrates two examplesa movewithin the United States and a move to a foreigncountry.

You may qualify for the deduction whether you areself-employed or an employee. The expenses must berelated to starting work at your new job location. How-ever, certain retirees and survivors may qualify to claimthe deduction even if they are not starting work at a new

job location. See Who Can Deduct Moving Expenses.

Home defined. Your home means your main home(residence). It can be a house, apartment, condomin-ium, houseboat, house trailer, or similar dwelling. It

does not include other homes owned or kept up by youor members of your family. It also does not include aseasonal home, such as a summer beach cottage. Yourformer homemeans your home before you left for yournew job location. Your new home means your homewithin the area of your new job location.

Useful ItemsYou may want to see:

Publication

523 Selling Your Home

Form (and Instructions)

2119 Sale of Your Home

3903 Moving Expenses

3903F Foreign Moving Expenses

8822 Change of Address

4782 Employee Moving Expense Information

See How To Get More Information, near the end ofthis publication, for information about getting the publi-cation and the forms listed.

Who Can DeductMoving ExpensesYou can deduct your allowable moving expenses if yourmove is closely related to the start of work. You alsomust meet the distance test and the time test. Thesetwo tests are discussed later.

Retirees or survivors. You may be able to deduct theexpenses of moving to the United States or its pos-sessions even if the move is not related to a new job.You must have worked outside the United States or bea survivor of someone who did. See Retirees or Survi-vors Who Move to the United States, later.

Related to Start of WorkYour move must be closely related, both in time and inplace, to the start of work at your new job location.

Closely related in time. You can generally considermoving expenses incurred within one year from the

date you first reported to work at the new location asclosely related in time to the start of work. It is notnecessary that you arrange to work before moving toa new location, as long as you actually do go to work.

If you do not move within one year, you ordinarilycannot deduct the expenses unless you can show thatcircumstances existed that prevented the move withinthat time.

Example. Your family moved more than a year afteryou started work at a new location. You delayed themove for 18 months to allow your child to complete highschool. You can deduct your allowable moving ex-penses.

Closely related in place. You can generally consideryour move closely related in place to the start of workif the distance from your new home to the new job lo-cation is not more than the distance from your formerhome to the new job location. A move that does notmeet this requirement may qualify if you can show that:

1) A condition of employment requires you to live atyour new home, or

2) You will spend less time or money commuting fromyour new home to your new job.

Distance TestYour move will meet the distance test if your new main

job location is at least 50 milesfarther from your formerhome than your old main job location was from yourformer home. For example, if your old job was 3 milesfrom your former home, your new job must be at least53 miles from that former home.

The distance between a job location and your homeis the shortest of the more commonly traveled routesbetween them. The distance test considers only thelocation of your former home. It does not take into ac-count the location of your new home.

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Figure A. Illustration of Distance Test

Formerresidence

3miles

Oldmain job

58

miles

38miles

Newmain job

Newmain job

DISTANCE TEST IS MET

Your new main job is at least 50miles further from your formerresidence than you old main jobwas.

DISTANCE TEST IS NOT MET

Your new main job is not atleast 50 miles further from yourformer residence than your oldmain job was.

Example. You moved to a new home less than 50miles from your former home because you changed joblocations. Your old job was 3 miles from your formerhome. Your new job is 60 miles from that home. Be-cause your new job is 57 miles farther from your formerhome than the distance from your former home to yourold job, you meet the 50-mile distance test.

First job or return to full-time work. If you go to workfull time for the first time, your place of work must beat least 50 miles from your former home to meet thedistance test. If you go back to full-time work after asubstantial period of part-time work or unemployment,your place of work also must be at least 50 miles fromyour former home.

TIP

Exception for Armed Forces. If you are in theArmed Forces and you moved because of apermanent change of station, you do not have

to meet the distance test. SeeMembers of the ArmedForces, later.

Main job location. Your main job location is usuallythe place where you spend most of your working time.A new job location is a new place where you will workpermanently or indefinitely rather than temporarily. Ifthere is no one place where you spend most of yourworking time, your main job location is the place whereyour work is centeredfor example, where you reportfor work or are otherwise required to base your work.

Union members. If you work for several employerson a short-term basis and you get work under a unionhall system (such as a construction or building tradesworker), your main job location is the union hall.

More than one job. If you have more than one jobanytime, your main job location depends on the factsin each case. The more important factors to be con-sidered are:

The total time you spend at each place,

The amount of work you do at each place, and

The money you earn from each place.

Time TestTo deduct your moving expenses, you also must meetone of the following time tests.

Time test for employees. If you are an employee, youmust work full time for at least 39 weeks during thefirst 12 monthsafter you arrive in the general area of

your new job location. For this time test, count only yourfull-time work as an employee; do not count any workyou do as a self-employed person. You do not have towork for the same employer for the 39 weeks. You donot have to work 39 weeks in a row. However, you mustwork full time within the same general commuting area.Full-time employment depends on what is usual for yourtype of work in your area.

Temporary absence from work. You are consid-ered full time during any week you are temporarily ab-sent from work because of illness, strikes, lockouts,layoffs, natural disasters, or similar causes. You arealso considered a full-time employee during any week

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you are absent from work for leave or vacation providedfor in your work contract or agreement.

Seasonal work. If your work is seasonal, you areconsidered working full time during the off-season onlyif your work contract or agreement covers an off-seasonperiod and that period is less than 6 months. For ex-ample, a school teacher on a 12-month contract whoteaches on a full-time basis for more than 6 months isconsidered a full-time employee for 12 months.

Time test for self-employed persons. If you areself-employed, you must work full time for at least 39weeks during the first 12 months AND for a total ofat least 78 weeks during the first 24 monthsafter youarrive in your new job location. For this time test, countany full-time work you do as an employee or as a self-employed person. You do not have to work for the sameemployer or be self-employed in the same trade orbusiness for the 78 weeks.

Self-employment. You are self-employed if youwork as the sole owner of an unincorporated businessor as a partner in a partnership carrying on a business.You are not considered self-employed if you aresemiretired, are a part-time student, or work only a few

hours each week.Full-time work. Whether you work full time during

any week depends on what is usual for your type ofwork in your area. For example, you are a self-employed dentist and maintain office hours 4 days aweek. You are considered to perform services full timeif maintaining office hours 4 days a week is usual forother self-employed dentists in the area.

Temporary absence from work. You are consid-ered to be self-employed on a full-time basis during anyweek you are temporarily absent from work becauseof illness, strikes, natural disasters, or similar causes.

Seasonal trade or business. If your trade or busi-ness is seasonal, the off-season weeks when no workis required or available may be counted as weeks ofperforming services full time. The off season must beless than 6 months and you must work full time beforeand after the off season.

For example, you own and operate a motel at abeach resort. You are considered self-employed on afull-time basis during the weeks of the off season if themotel is closed for less than 6 months and you workas a full-time operator of the motel before and after theoff season.

TIP

Joint return. If you are married and file a jointreturn and both you and your spouse work fulltime, either of you can satisfy the full-time work

test. However, you cannot combine the weeks yourspouse worked with the weeks you worked to satisfythat test.

Time test not yet met. You can deduct your movingexpenses on your 1997 tax return even if you have notyet met the time test by the date your 1997 return isdue. You can do this if you expect to meet the 39-weektest in 1998, or the 78-week test in 1998 or 1999. If youdeduct moving expenses but do not meet the time testby 1998 or 1999, you must either:

Table 1. Satisfying the Time Test for Employeesand Self-employed Persons

IF you are... THEN you satisfy the

time test by meeting...

An employee and becomeself-employed beforesatisfying the 39-weektest for employees

Self-employed andbecome an employeebefore satisfying the78-week test

Both self-employed andan employee

The 78-week test forself-employed persons.

The 39-week test foremployees, or using thetime spent as a full-timeemployee to satisfy the78-week test.

The 78-week test for aself-employed person orthe 39-week test for anemployee. You mustdetermine which job youspend the most time on.

1) Report your moving expense deduction as otherincome on your Form 1040 for the year you cannotmeet the test, or

2) Amend your 1997 return.

Use Form 1040X, Amended U.S. Individual IncomeTax Return, to amend your return.

If you do not deduct your moving expenses on your1997 return, and you later meet the time test, you canfile an amended return for 1997 to take the deduction.

Example. You arrive in the general area of your new job on September 15, 1997. You deduct your moving

expenses on your 1997 return, the year of the move,even though you have not yet met the time test by thedate your return is due. If you do not meet the 39-weektest by September 15, 1998, you must either:

1) Report as income on your 1998 return the amountyou deducted as moving expenses on your 1997return, or

2) Amend your 1997 return.

Exceptions to the time test. You do not have to meetthe time test if one of the following applies:

1) You are in the Armed Forces and you moved be-cause of a permanent change of stationseeMembers of the Armed Forces, later,

2) You moved to the United States because youretiredsee Retirees or Survivors Who Move to theUnited States, later,

3) You are the survivor of a person whose main joblocation at the time of death was outside the UnitedStatessee Retirees or Survivors Who Move to theUnited States, later,

4) Your job at the new location ends because of deathor disability, or

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5) You are transferred for your employer's benefit orlaid off for a reason other than willful misconduct.For this exception, you must have obtained full-timeemployment, and you must have expected to meetthe test at the time you started the job.

Members of the Armed ForcesIf you are a member of the Armed Forces on active dutyand you move because of a permanent change of sta-tion, you do not have to meet the distance and timetests, discussed earlier. You can deduct your unreim-bursed allowable moving expenses.

A permanent change of station includes:

1) A move from your home to the first post of activeduty,

2) A move from one permanent post of duty to an-other, and

3) A move from your last post of duty to your homeor to a nearer point in the United States. The movemust occur within one year of ending your activeduty or within the period allowed under the JointTravel Regulations.

Spouse and dependents. If a member of the ArmedForces deserts, is imprisoned, or dies, a permanentchange of station for the spouse or dependent includesa move to:

the place of enlistment,

the member's, spouse's, or dependent's home ofrecord, or

a nearer point in the United States.

If the military moves you and your spouse and de-

pendents to or from separate locations, the moves aretreated as a single move to your new main job location.

Services or reimbursements provided by govern-ment. Do not include in income the value of movingand storage services provided by the government be-cause of a permanent change of station. If the totalreimbursements or allowances you receive from thegovernment because of the move are more than youractual moving expenses, the government should in-clude the excess in your wages on Form W2. How-ever, the excess portion of a dislocation allowance, atemporary lodging allowance, a temporary lodging ex-pense, or a move-in housing allowance is not includedin income. Do not attach Form 3903 or Form 3903Fto your Form 1040.

If your reimbursements or allowances are less thanyour actual moving expenses, do not include the re-imbursements or allowances in income. You can deductthe expenses that exceed your reimbursements. SeeDeductible Moving Expenses, later.

How to complete Form 3903 for members of theArmed Forces. Take the following steps:

1) Complete lines 4 through 6, using your actual ex-penses. Do not reduce your expenses by any re-imbursements or allowances you received from the

government because of the move. Also, do not in-clude any expenses for moving services providedby the government.

2) Enter on line 7 the total reimbursements and al-lowances you received from the government for theexpenses in step 1. Do not include the value ofmoving services provided by the government. Alsodo not include any part of a dislocation allowance,a temporary lodging allowance, a temporary lodging

expense, or a move-in housing allowance.3) Complete line 8. If line 6 is more than line 7, sub-

tract line 7 from line 6 and enter the result on line8 and on Form 1040, line 25. This is your movingexpense deduction. If line 6 is equal to or less thanline 7, enter zero on line 8 (you do not have amoving expense deduction). Subtract line 6 fromline 7 and, if the result is more than zero, enter iton Form 1040, line 7.

Form 3903F. To complete Form 3903F, see theinstructions for Form 3903F.

If the military moves you and your spouse anddependents to or from different locations, treat these

moves as a single move. Unless they exceed actualexpenses, do not include in income reimbursements,allowances, or the value of moving and storage ser-vices provided by the government to move you, yourspouse, and your dependents to and from the separatelocations.

CAUTION

!Do not deduct any expenses for moving ser-vices provided by the government.

Retirees or SurvivorsWho Move to the United StatesYou can deduct your allowable moving expenses if youmove to the United States or to a possession of theUnited States. You do not have to meet the time test,discussed earlier, but you must meet the requirementsdiscussed below.

Retirees. You can deduct moving expenses for a moveto a new home in the United States when you perma-nently retire. However, both your former main job lo-cation and your former home must have been outsidethe United States.

Permanently retired. You are considered perma-nently retired when you cease gainful full-time employ-ment or self-employment. If at the time you retire, youintend your retirement to be permanent, you will beconsidered retired though you later return to work. Yourintention to retire permanently will be determined by:

1) Your age and health,

2) The customary retirement age for people who dosimilar work,

3) Whether you receive retirement payments from apension or retirement fund, and

4) The length of time before you return to full-timework.

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Figure B. Qualifying Moves Within the United States (Non-Military)1

Start Here:

Yes

NoWas your move closely related to anew or changed job location?

2

Is your new job at least 50 milesfarther from your FORMER HOME thanyour old job was?

Are you an employee?

Did you or will you work full time as anemployee for at least 39 weeks in the

1st 12 months after you arrived in thenew area?

3,4

YOUR MOVE DOES QUALIFY.You may be able to deduct yourmoving expenses.

Are you self-employed?

Did you or will you work full time as anemployee or a self-employed person

for at least 78 weeks in the first 24months (which includes 39 weeks inthe first 12 months) after you arrived inthe new area?

YOURMOVE

DOES NOTQUALIFY

1Military persons should see Members of the Armed Forcesfor special rules that apply to them.

2Your move must be closely related to the start of work at your new job location. See Related to Start of Work.

3

If you deduct expenses and do not meet this test later, you must either file an amended tax return or report your moving expense deduction as other income.See Time test not yet met.4 If you became self-employed during the first twelve months, answer YES if your combined time as a full-time employee and self-employed person equals or will

equal at least 78 weeks in the first 24 months (including 39 weeks in the first 12 months) after you arrived in the new area.

Yes

Yes

Yes

Yes

Yes

No

No

No

No

No

Survivors. You can deduct moving expenses for amove to a home in the United States if you are thespouse or the dependent of a person whose main joblocation at the time of death was outside the UnitedStates. The move must begin within 6 months after thedecedent's death. It must be from the decedent's formerhome outside the United States. That home must alsohave been your home.

When a move begins. A move begins when :

1) You contract for your household goods and per-sonal effects to be moved to your home in theUnited States, but only if the move is completedwithin a reasonable time.

2) Your household goods and personal effects arepacked and on the way to your home in the UnitedStates.

3) You leave your former home to travel to your newhome in the United States.

DeductibleMoving ExpensesIf you meet the requirements discussed earlier, you candeduct the reasonable expenses of:

1) Moving your household goods and personal effects(including in-transit or foreign-move storage ex-

penses), and2) Traveling (including lodging but not meals) to your

new home.

However, you cannot deduct any expenses for meals.

Reasonable expenses. You can deduct only thoseexpenses that are reasonable for the circumstances ofyour move. For example, the cost of traveling from yourformer home to your new one should be by the shortest,most direct route available by conventional transporta-tion. If during your trip to your new home, you make side

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trips for sightseeing, the additional expenses for yourside trips are not deductible as moving expenses.

Travel by car. If you use your car to take yourself,members of your household, or your personal effectsto your new home, you can figure your expenses bydeducting either:

1) Your actual expenses, such as gas and oil for yourcar, if you keep an accurate record of each ex-

pense, or2) 10 cents a mile.

You can deduct parking fees and tolls you pay in mov-ing. You cannot deduct any part of general repairs,general maintenance, insurance, or depreciation foryour car.

Member of your household. You can deduct movingexpenses you pay for yourself and members of yourhousehold. A member of your household is anyone whohas both your former and new home as his or her home.It does not include a tenant or employee, unless you

can claim that person as a dependent.

Location of move. There are different rules for movingwithin or to the United States than for moving outsidethe United States. These rules are discussed sepa-rately.

Moves Within or tothe United StatesIf you meet the requirements under Who Can DeductMoving Expenses, earlier, you can deduct allowableexpenses for a move to the area of a new main joblocation within the United States or its possessions.

Your move may be from one United States location toanother or from a foreign country to the United States.

Form 3903. Use Form 3903 to deduct your movingexpenses if you moved within or to the United Statesor one of its possessions. An example of a filled-in Form3903 is shown later.

Household goods and personal effects. You candeduct the cost of packing, crating, and transportingyour household goods and personal effects and thoseof the members of your household from your formerhome to your new home. If you use your own car tomove your things, see Travel by car, earlier. You can

include the cost of storing and insuring householdgoods and personal effects within any period of 30consecutive daysafter the day your things are movedfrom your former home and before they are deliveredto your new home.

You can deduct any costs of connecting or discon-necting utilities required because you are moving yourhousehold goods, appliances, or personal effects.

You can deduct the cost of shipping your car andyour household pets to your new home.

You can deduct the cost of moving your householdgoods and personal effects from a place other than yourformer home. Your deduction is limited to the amount

it would have cost to move them from your formerhome.

Example. Paul Brown is a resident of North Carolinaand has been working there for the last 4 years. Be-cause of the small size of his apartment, he storedsome of his furniture in Georgia with his parents. Paulgot a job in Washington, DC. It cost him $300 to movehis furniture from North Carolina to Washington and$1,100 to move his furniture from Georgia to Washing-

ton. If Paul shipped his furniture in Georgia from NorthCarolina (his former home), it would have cost $600.He can deduct only $600 of the $1,100 he paid. He candeduct $900 ($300 + $600).

CAUTION

!You cannot deduct the cost of moving furnitureyou buy on the way to your new home.

Travel expenses. You can deduct the cost of trans-portation and lodging for yourself and members of yourhousehold while traveling from your former home toyour new home. This includes expenses for the day youarrive. You can include any lodging expenses you had

in the area of your former home within one day afteryou could not live in your former home because yourfurniture had been moved. You can deduct expensesfor only one trip to your new home for yourself andmembers of your household. However, all of you do nothave to travel together. If you use your own car, seeTravel by car, earlier.

Moves Outsidethe United StatesTo deduct allowable expenses for a move outside theUnited States, you must be a United States citizen orresident alien who moves to the area of a new place

of work outside the United States or its possessions.You must meet the requirements under Who Can De-duct Moving Expenses, earlier.

Form 3903F. Use Form 3903F if you moved outsidethe United States or its possessions. A filled-in Form3903F is shown later. A separate Form 3903F mustbe completed for each foreign move.

For an explanation of expenses that you can deduct,see the discussion Moves Within or to the UnitedStates, earlier. The following discussion gives additionalinformation on expenses that you can deduct on Form3903F.

Storage expenses. You can deduct the reasonableexpenses of moving your personal effects to and fromstorage. You can also deduct the reasonable expensesof storing your personal effects for all or part of the timethe new job location remains your main job location.The new job location must be outside the United States.

Move in an earlier year. If you moved in an earlieryear and are deducting only storage fees while you aregone from the United States, do not use Form 3903F.Enter the net amount (after the reduction for the partthat is allocable to excluded income) on line 25, Form1040, and write Storage Fees to the left of the entryspace.

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Moving expenses allocable to excluded foreign in-come. If you live and work outside the United States,you may be able to exclude from income part of theincome you earn in the foreign country. You may alsobe able to claim a foreign housing exclusion or de-duction. If you claim the foreign earned income or for-eign housing exclusions, you cannot deduct the part ofyour allowable moving expenses that relates to the ex-cluded income.

TIP Publication 54, Tax Guide for U.S. Citizens andResident Aliens Abroad, discusses the foreignearned income exclusion, the foreign housing

exclusion, and the foreign housing deduction. It alsoexplains how to figure the part of your moving expensesthat relates to excluded income. You can get the pub-lication from most United States Embassies and con-sulates, or by writing to the IRS Forms DistributionCenter for your area as shown in your income taxpackage.

Nondeductible ExpensesYou cannot deduct the following items as moving ex-penses:

Pre-move househunting expenses,

Temporary living expenses,

Meal expenses,

Expenses of buying or selling a home,

Expenses of getting or breaking a lease,

Security deposits (including any given up due to the

move), Home improvements to help sell your home,

Loss on the sale of your home,

Mortgage penalties,

Losses from disposing of memberships in clubs,

Any part of the purchase price of your new home,

Real estate taxes,

Car tags,

Driver's license,

Refitting carpets and draperies, and

Storage charges except those incurred in-transitand for foreign moves.

Temporary employment. You cannot take a movingexpense deduction and a business expense deductionfor the same expenses. You must decide if your ex-penses are deductible as moving expenses or as busi-ness expenses. For example, expenses you have fortravel, meals, and lodging while temporarily working ata place away from your regular place of work may bedeductible as business expenses if you are consideredaway from home on business. Generally, your work ata single location is considered temporary if it is realis-

tically expected to last (and does in fact last) for oneyear or less.

TIP

See Publication 463, Travel, Entertainment,Gift, and Car Expenses, for information on de-ducting your expenses.

Tax Withholdingand Estimated TaxYour employer must withhold income tax, social secu-rity tax, and Medicare tax from reimbursements andallowances paid to you that are included in your income.See Reimbursements included in income, later.

Reimbursements excluded from income. Your em-ployer should not include in your wages reimburse-ments paid under an accountable plan (explained later)for moving expenses that you:

1) Could deduct if you had paid or incurred them, and2) Did not deduct in an earlier year.

These reimbursements are fringe benefits excludablefrom your income as qualified moving expense re-imbursements. Your employer should report these re-imbursements in box 13 of Form W2.

CAUTION

!Youcannotclaim a moving expense deductionfor these reimbursed expenses (see Re-imbursements underHow To Report, later).

Expenses deducted in earlier year. If you receive

reimbursement this year for moving expenses deductedin an earlier year, and the reimbursement is not in-cluded as wages in box 1 of your Form W-2, you mustinclude the reimbursement on line 21 of your Form1040. Your employer should show the amount of yourreimbursement in box 13 of your Form W-2.

Reimbursements included in income. Your em-ployer must include in your income any reimbursementsmade (or treated as made) under a nonaccountableplan, even if they are for deductible moving expenses.See Reimbursementsunder How To Report, later. Youremployer must also include in your gross income aswages any reimbursements of, or payments for, non-

deductible moving expenses. This includes amountsyour employer reimbursed you under an accountableplan (explained later) for meals, househunting trips, andreal estate expenses. It also includes reimbursementsthat exceed your deductible expenses and that you donot return to your employer.

Reimbursement for deductible and nondeductibleexpenses. If your employer reimburses you for bothdeductible and nondeductible moving expenses, youremployer must determine the amount of the re-imbursement that is not taxable and not subject towithholding. Your employer must treat any remaining

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amount as taxable wages, and withhold income tax,social security tax, and Medicare tax.

Amount of income tax withheld. If the reimburse-ments or allowances you receive are taxable, theamount of income tax your employer will withhold de-pends on several factors. It depends in part on whetheror not income tax is withheld from your regular wages,on whether or not the reimbursements and allowancesare combined with your regular wages, and on any in-formation you have given to your employer on FormW4, Employee's Withholding Allowance Certificate.

Estimated tax. If you must make estimated tax pay-ments, you need to take into account any taxable re-imbursements and deductible moving expenses in fig-uring your estimated tax. For details about estimatedtax, see Publication 505.

How To ReportThe following discussions explain how to report your

moving expenses and any reimbursements or allow-ances you received for your move.

TIP

UseForm 3903 to report your moving expensesif your move was within or to the United Statesor its possessions. Use a separate Form 3903

for each qualified move.

TIP

Use Form 3903F to report your moving ex-penses if your move was outside the UnitedStates or its possessions. Use a separate Form

3903F for each qualified move outside the United

States or its possessions.

Where to deduct. Deduct your moving expenses online 25 of Form 1040. The amount of moving expensesyou can deduct is shown on line 8 of Form 3903, or line7 of Form 3903F.

CAUTION

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

ReimbursementsThis section explains what to do when you receive areimbursement (includes advances and allowances) forany of your moving expenses discussed in this publi-cation.

If you received a reimbursement for your allowablemoving expenses, how you report this amount and yourexpenses depends on whether the reimbursement waspaid to you under an accountable plan or a nonac-countable plan. These plans are discussed later. For aquick overview of how to report the reimbursement, seeTable 2.

Your employer should tell you what method of re-imbursement is used and what records they require.

Employers. If you are an employer and you reimburseemployee moving expenses, how you treat this re-imbursement on your employee's Form W2 dependsin part on whether you have an accountable plan. Re-imbursements treated as paid under an accountableplan are reported in box 13 with code P. For more in-formation, see Publication 535, Business Expenses.

Reimbursements treated as paid under nonaccount-able plans, as explained later, are reported as pay. SeePublication 15, Circular E, Employer's Tax Guide, for

information on employee pay.

Accountable plans. To be an accountable plan, youremployer's reimbursement arrangement must requireyou to meet all three of the following rules:

1) Your expenses must be of the type for which a de-duction would be allowed had you paid themyourselfthat is, the reasonable expenses of mov-ing your possessions from your former home toyour new home, and traveling from your formerhome to your new home,

2) You must adequately account to your employer for

these expenses within a reasonable period of time,and

3) You must return any excess reimbursement or al-lowance within a reasonable period of time.

An excess reimbursement includes any amountyou are paid or allowed that is more than the movingexpenses that you adequately accounted for to youremployer. See Returning excess reimbursements, later,for information on how to handle these excess amounts.

Adequate accounting. You adequately account bygiving your employer documentary evidence of yourmoving expenses, along with a statement of expense,an account book, a diary, or a similar record in which

you entered each expense at or near the time you hadit. Documentary evidence includes receipts, canceledchecks, and bills.

Returning excess reimbursements. You must berequired to return any excess reimbursement for yourmoving expenses to the person paying the reimburse-ment. Excess reimbursement includes any amount forwhich you did not adequately account within a reason-able period of time. For example, if you received anadvance and you did not spend all the money ondeductible moving expenses, or you do not have proofof all your expenses, you have an excess reimburse-ment.

Reasonable period of time. What constitutes areasonable period of time depends on the facts of yoursituation. The IRS will consider it reasonable for you to:

1) Receive an advance within 30 days of the time youhave an expense,

2) Adequately account for your expenses within 60days after they were paid or incurred, and

3) Return any excess reimbursement within 120 daysafter the expense was paid or incurred.

If you are given a periodic statement (at least quar-terly) that asks you to either return or adequately ac-

Page 9


10/19

count for outstanding advances and you comply within120 days of the statement, the IRS will consider theamount adequately accounted for or returned within areasonable period of time.

Employee meets accountable plan rules. If forall reimbursements you meet the three rules for an ac-countable plan, your employer should not include anyreimbursements of allowable expenses in your incomein box 1 of your Form W2. Instead, your employershould include the reimbursements in box 13 of your

Form W2.

Example. You lived in Boston and accepted a jobin Atlanta. You sold your home at a loss and bought anew one in Atlanta. Under an accountable plan, youremployer reimbursed you for your actual traveling ex-penses from Boston to Atlanta and the cost of movingyour furniture to Atlanta.

Your employer will include the reimbursement in box13 of your Form W2. If your allowable expenses aremore than your reimbursement, show all of your ex-penses on lines 4 and 5 of Form 3903. Include thereimbursement on line 7 of Form 3903.

Employee does not meet accountable plan rules.You may be reimbursed by your employer, but for partof your expenses you may not meet all three rules.

If your deductible expenses are reimbursed underan otherwise accountable plan but you do not return,within a reasonable period, any reimbursement of ex-penses for which you did not adequately account, thenonly the amount for which you did adequately accountis considered as paid under an accountable plan. Theremaining expenses are treated as having been reim-bursed under a nonaccountable plan (discussed later).

Reimbursement of nondeductible expenses. Youmay be reimbursed by your employer for moving ex-penses, some of which are deductible expenses and

some of which are not deductible. The reimbursementsreceived for the nondeductible expenses are treatedas paid under a nonaccountable plan.

Nonaccountable plans. A nonaccountable plan is areimbursement arrangement that does not meet thethree rules listed earlier under Accountable plans.

In addition, the following payments will be treated aspaid under a nonaccountable plan:

1) Excess reimbursements you fail to return to youremployer, and

2) Reimbursements of nondeductible expenses. See

Reimbursement of nondeductible expenses, earlier.

If an arrangement pays for your moving expenses byreducing your wages, salary, or other pay, the amountof the reduction will be treated as a payment madeunder a nonaccountable plan. This is because you areentitled to receive the full amount of your pay regardlessof whether you incurred any moving expenses.

If you are not sure if the moving expense re-imbursement arrangement is an accountable or non-accountable plan, see your employer.

Your employer will combine the amount of any re-imbursement paid to you under a nonaccountable plan

with your wages, salary, or other pay. Your employerwill report the total in box 1 of your Form W2.

Example. To get you to work in another city, yournew employer reimburses you under an accountableplan for the $7,500 loss on the sale of your home. Sincethis is a reimbursement of a nondeductible expense, itis treated as paid under a nonaccountable plan andmust be included as pay on your Form W2.

Completing Form 3903. Complete lines 1 3 to seewhether you meet the distance test. If so, completelines 4 6 using your actual expenses (except, if youuse your own car, you can figure expenses based ona mileage rate of 10 cents a mile, instead of on actualamounts for gas and oil). Enter on line 7 the totalamount of your moving expense reimbursement thatwas excluded from your wages. This excluded amountshould be identified with code P in box 13 of Form W2.

If line 6 is more than line 7, subtract line 7 from line6 and enter the result on line 8 and on Form 1040, line25. This is your moving expense deduction. If line 6 isequal to or less than line 7, enter zero on line 8 (youhave no moving expense deduction). Subtract line 6

from line 7 and, if the result is more than zero, includeit on Form 1040, line 7.Form 3903F. To complete Form 3903F, see the

instructions for that form.

Form 4782. Your employer must give you an itemizedlist of reimbursements, payments, or allowances thathave been paid to you for moving expenses. Form4782, Employee Moving Expense Information, shownlater, may be used for this purpose. This form showsthe amount of any reimbursement, payment, or allow-ance made to you or to a third party for your benefit. Italso shows the value of any services provided in kindto you. Your employer must provide a separate form

or statement for each move for which you were reim-bursed.

Uniform Relocation Assistance and Real PropertyAcquisition Policies Act of 1970. Do not include inincome any moving expense payment you receivedunder the Uniform Relocation Assistance and RealProperty Acquisition Policies Act of 1970. These pay-ments are made to persons displaced from their homes,businesses, or farms by federal projects.

When To Deduct ExpensesIf you were not reimbursed, deduct your allowable

moving expenses either in the year you had them or inthe year you paid them.

Example. In December 1997, your employer trans-ferred you to another city in the United States, whereyou still work. You are single and were not reimbursedfor your moving expenses. In 1997 you paid for movingyour furniture. You deducted these expenses in 1997.In January 1998, you paid for travel to the new city. Youcan deduct these additional expenses in 1998.

Reimbursed expenses. If you are reimbursed for yourexpenses, you may be able to deduct your allowableexpenses either in the year you had them or paid them.

Page 10


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Table 2. Reporting Employee Moving Expenses and Reimbursements

Type of ReimbursementArrangement

Employer Reports on Form W-2 Employee Shows on Form 3903or 3903-F

AccountableActual allowable expensereimbursement

Adequate accounting and excess

returnedActual allowable expensereimbursement

Adequate accounting and return ofexcess both required but excessnot returned

Actual allowable expensereimbursement with mileage

allowance (up to standard mileagerate)

Adequate accounting and excessreturned

Actual allowable expensereimbursement with mileageallowance (exceeds standardmileage rate)

Adequate accounting up to the

standard mileage rate only andexcess not returned

Nonaccountable

Either adequate accounting orreturn of excess, or both notrequired by plan

No reimbursement

Reimbursement reported only inbox 13it is not reported in box 1

Excess reported as wages in box1. Amount adequately accountedfor is reported only in box 13it isnot reported in box 1.

Reimbursement reported only inbox 13it is not reported in box 1

Excess reported as wages in box1. Amount up to the standardmileage rate and otherreimbursement is reported only inbox 13it is not reported in box 1.

Entire amount is reported as wagesin box 1.

Normal reporting of wages, etc.

All allowable expenses andreimbursements if excess expensesare claimed.

1

All allowable expenses (andreimbursements reported on FormW-2, box 13) if expenses in excessof the reimbursement reported inbox 13 of Form W-2 are claimed.

1

Otherwise, form is not filed.

All allowable expenses andreimbursements if excess expenses

are claimed.1

All allowable expenses (andreimbursements reported on FormW-2, box 13) if expenses in excessof the reimbursement reported inbox 13 of Form W-2 are claimed.

1


All allowable expenses1

All allowable expenses1



1

Any allowable moving expense is carried to line 25 of Form 1040 and deducted as an adjustment to gross income.

If you use the cash method of accounting, you canchoose to deduct the expenses in the year you are re-imbursed even though you paid the expenses in a dif-ferent year. See Choosing when to deduct, later.

If you are reimbursed for your expenses in a lateryear than you paid the expenses, you may want to de-lay taking the deduction until the year you receive thereimbursement. If you do not choose to delay your de-duction until the year you are reimbursed, you mustinclude the reimbursement in your income, even if youare reimbursed under an accountable plan. See Re-imbursements excluded from income and its dis-

cussion, Expenses deducted in earlier year, under TaxWithholding and Estimated Tax, earlier.

Choosing when to deduct. If you use the cashmethod of accounting, which is used by most individ-uals, you can choose to deduct moving expenses in theyear your employer reimburses you if:

1) You paid the expenses in a year before the yearof reimbursement, or

2) You paid the expenses in the year immediately afterthe year of reimbursement but by the due date, in-cluding extensions, for filing your return for the re-imbursement year.

Page 11


12/19

How to make the choice. You can choose to de-duct moving expenses in the year you received re-imbursement by taking the deduction on your return,or amended return, for that year.

CAUTION

!You cannot deduct any moving expenses forwhich you received a reimbursement that wasexcluded from your income. Reimbursements

excluded from, or included in, income are discussedunderTax Withholding and Estimated Tax, earlier.

Moving Withinthe United StatesTom Smith is married and has two children. He ownedhis home in Detroit where he worked. On February 8,his employer told him that he would be transferred toSan Diego as of April 10 that year. His wife, Peggy, flewto San Diego on March 1 to look for a new home. Sheput down $25,000 on a house being built and cameback to Detroit on March 4. The Smiths sold theirDetroit home for $1,500 less than they paid for it. Theycontracted to have their personal effects moved to San

Diego on April 3. The family drove to San Diego wherethey found that their new home was not finished. Theystayed in a nearby motel until the house was ready onMay 1. On April 10, Tom went to work in the San Diegoplant where he still works.

His records for the move show:

Tom was reimbursed $10,599 under an accountableplan as follows:

Tom's employer gave him Form 4782 to show hima breakdown of the amount of reimbursement. Thisform is shown later.

The employer included this reimbursement on Tom'sForm W2 for the year. The reimbursement of deduct-ible expenses, $7,200 for moving household goods andtravel to San Diego, was included in box 13 of FormW2. His employer identified this amount with code P.

The employer included the balance, $3,399 re-imbursement of nondeductible expenses, in box 1 of

Form W2 with Tom's other wages. He must includethis amount on line 7 of Form 1040. The employerwithholds taxes from the $3,399, as discussed underNondeductible expenses, earlier. Also, Tom's employercould have given him a separate Form W2 for hismoving reimbursement.

Tom figures his deduction for moving expenses asfollows:

Tom enters these amounts on Form 3903 to figurehis deduction. His Form 3903 is shown later. He alsoenters his deduction, $1,200, on line 25, Form 1040.

Nondeductible expenses. Of the $42,974 movingexpenses that Tom incurred, the following items cannotbe deducted:

Item 1, pre-move househunting expenses.

Item 2, the down payment on the San Diego home.If any part of it were for payment of deductible taxes

or interest on the mortgage on the house, that partwould be deductible as an itemized deduction.

Item 3, the real estate commission paid on the saleof the Detroit home. The commission is used to fig-ure the gain or loss on the sale.

Item 4, the loss on the sale of the Detroit home. TheSmiths cannot deduct it even though Tom's em-ployer reimbursed him for it.

Item 6, the meals expense while driving to SanDiego. (However, the lodging and car expenses aredeductible.)

Item 7, temporary living expenses.

Item 5, moving personal effects ........................................................... $8,000

Item 6, driving to San Diego ($220 + $180) ......................................... 400

Total deductible moving expenses ....................................................... $8,400

Minus: Reimbursement included in box 13 ofForm W2 ........................................................................................... 7,200Deduction for moving expenses ....................................................... $1,200

1) Peggy's pre-move househunting trip:Travel and lodging ............................................................... $449Meals ................................................................................... 75 $524

2) Down payment on San Diego home ................................................ 25,000

3) Real estate commission paid on sale of Detroithome .............................................................................................. 3,500

4) Loss on sale of Detroit home (not including realestate commission) ........................................................................ 1,500

5) Amount paid for moving personal effects

(furniture, other household goods, etc.) ......................................... 8,000

6) Expenses of driving to San Diego:Mileage (Start 14,278; End 16,478)2,200 miles at 10 cents a mile .......................................... $220Lodging ................................................................................ 180Meals ................................................................................... 320 720

7) Cost of temporary living expenses in San Diego:Motel rooms ......................................................................... $1,450Meals ................................................................................... 2,280 3,730

Total ...................................................................................................... $42,974

Moving personal effects ........................................................................ $ 6,800Travel (and lodging) to San Diego ....................................................... 400Travel (and lodging) for househunting trip ........................................... 449Lodging for temporary quarters ............................................................ 1,450Loss on sale of home ........................................................................... 1,500

Total reimbursement .......................................................................... $10,599

Page 12


13/19

Tom Smit h 325 0 0 6 437

6,800

3,399

10 ,599

40 0

6,800

3,399

40 0

Loss on sale of home

$1,50 0Travel and lodging - Househunt ing

$ 449Lodging - Temporary quar t ers

$1,450

97

Employee Moving Expense Information(Rev. July 1997)

Payments made during the calendar year Department of the TreasuryInternal Revenue Service

(a) Amount paidto employee

Form 4782 (Rev. 7-97)

4782Form

Do not file.

Keep for your records.

Social security numberName of employee

Moving Expense Payments

(b) Amount paid to a thirdparty for employees benefit

and value of servicesfurnished in kind

(c) Total(Add columns (a) and (b).)

Instructions for employers are on the back.

Cat. No. 13079T

Transportation and storage of household goods

and personal effects

Travel and lodging payments for expenses ofmoving from old to new home. Do not includemeals

1

2

3

3

1

2

All other payments (list type and amount).Note: These amounts must be included in the

employees income and are subject to

withholding

4 Total. Add the amounts in column (c) of lines 1 through 3 4

OMB No. 1545-0182

For Paperwork Reduction Act Notice, see back of form.

Page 13


14/19

325 0 0 6 437

2,200

5

2,195

Tom and Peggy Smit h

8,000

40 0

8,400

7,200

1,20 0

OMB No. 1545-0062Moving ExpensesForm 3903

Attach to Form 1040.Department of the TreasuryInternal Revenue Service

AttachmentSequence No. 62

Name(s) shown on Form 1040 Your social security number

1Enter the number of miles from your old home to your new workplace1

2Enter the number of miles from your old home to your old workplace2

3Subtract line 2 from line 1. Enter the result but not less than zero3

Is line 3 at least 50 miles?

4 4

Travel and lodging expenses of moving from your old home to your new home.Do not includemeals (see instructions)

5

6 Add lines 4 and 5

Enter the total amount your employer paid for your move (including the value of services furnishedin kind) that is not included in the wages box (box 1) of your W-2 form. This amount should beidentified with code P in box 13 of your W-2 form

7

Subtract line 7 from line 6. Enter the result here and on Form 1040, line 25. This is yourmovingexpense deduction

8

Transportation and storage of household goods and personal effects (see instructions)

Caution: If you are a member of the armed forces, see the instructions before

completing this form.

5

6

8

7

Form 3903 (1997)For Paperwork Reduction Act Notice, see back of form. Cat. No. 12490K

Yes.

No.

Go to line 4. Also, see Time Test in the instructions.

You cannot deduct your moving expenses. Do not complete the rest of this form.

Is line 6 more than line 7?

Yes.

No.

Go to line 8.

You cannot deduct your moving expenses. If line 6 is less than line 7, subtract line 6from line 7 and include the result in income on Form 1040, line 7.

miles

miles

miles

97

Page 14


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Moving to a Foreign CountryMark Green is married and has two children. He andhis wife, Mary, owned their home in the Washington,D.C., area where he worked. On January 19, he wastold by his employer that he would be transferred toLondon, England, as of March 20 that year. The Greenssold their Washington home for more than they paid forit. Mary and the children stayed in the home until the

children finished the school year. Mark flew to Londonon March 19 and moved into a hotel. He stayed in thehotel through June 16. On March 20, Mark went to workin the London office where he still works. On May 5,Mark paid $3,000 as a security deposit on a furnishedhome in the London area that he could move into onJune 17. Their personal effects were moved out of theirold home on June 15. Most of their possessions wereput in storage in Washington; the rest were shipped toLondon. Mary and the children stayed in a nearby motelon June 15 and flew to London on June 16, where theystayed in a hotel that night. Mark and his family movedinto their leased home on June 17.

His records for the move show:

Mark was reimbursed under his employer's ac-countable plan $17,793 as follows:

Mark's employer gave him Form 4782 to show hima breakdown of the amount of reimbursement.

The employer included this reimbursement on Mark'sForm W2 that year. The reimbursement of deductibleexpenses, $8,793 for moving and storing householdgoods and travel to London, was included in box 13 ofForm W2. His employer identified this amount withcode P.

The employer included the balance, $9,000 re-imbursement of nondeductible temporary living ex-penses, in box 1 of Form W2 with Mark's other wages.He must include this amount on line 7 of Form 1040.The employer withholds income tax, social security tax,and Medicare tax from the $9,000. Also, Mark's em-ployer could have given him a separate Form W2 forhis moving reimbursement.

Mark figures his deduction for moving expenses asfollows:

Mark enters these amounts on Form 3903F to fig-

ure the deduction. Mark also enters the deduction,$1,125, on line 25, Form 1040. He enters the amountof any moving expenses allocable to excluded incomeor the housing exclusion on Form 2555. Publication54 shows how to make this allocation.

Tax treatment of expenses. The following items cor-respond to those in the first list of expenses (Total:$31,877) in this example. These items explain howeach expense is treated.

Item 1, expenses paid on the sale of the Washingtonhome, is used to figure the gain or loss on the sale.The expenses are not deductible as a moving ex-

pense. Item 2, Mark's travel expenses to London includes

the cost of meals, which is not deductible as amoving expense; this also applies to the cost of hisfamily's meals in item 6. However, Mark's othertravel expenses, including lodging in London onMarch 19, the day he arrived, are deductible movingexpenses. Mark adds Items 2 and 6 together (ex-cept meals) and enters the amount on line 4 of Form3903F.

Item 3, the $3,000 security deposit on the lease ofthe London home, is not a moving expense. SeeNondeductible Expenses, earlier.

Item 4, Mark's 89 days of temporary living ex-penses, from March 20 to June 16, is not deductibleas a moving expense.

Item 5, moving and storage expenses for personaleffects (furniture, other household goods, etc.) was$8,100. Mark enters this amount on line 3, Form3903F. Of that amount, $2,900 was paid for storingtheir personal effects in Washington that year. Aslong as Mark stays on his London job, he can deductthe amount he pays each year to store their per-sonal effects.

Item 6, Mary's and the children's travel expenses toLondon includes the cost of their meals, which isnot a deductible moving expense. However, theirother travel expenses are deductible. This includeslodging in the Washington area on June 15, the daytheir personal effects were moved out of their home.The other travel expenses also include the cost oftheir lodging in London on June 16, the day theyarrived. Mark has already added Items 2 and 6together (except meals) and entered the amount online 4 of Form 3903F.

Item 5, moving and storing personal effects ........................................ $8,100

Items 2 and 6, expenses of travel to London($392 + $90 + $1,176 + $160) ........................................................... 1,818

Total deductible moving expenses ....................................................... $9,918

Minus: Reimbursement included in box 13 ofForm W2 ........................................................................................... 8,793Deduction for moving expenses before allocation $1,125

1) Expenses paid on sale of Washington home .................................. $7,850

2) Mark's traveling expenses to London:Travel ................................................................................... $392Meals ................................................................................... 19Lodging (in London on March 19) ....................................... 90 501

3) Security deposit on lease of London home ..................................... 3,000

4) Mark's temporary living expenses in Londonfrom March 20 through June 16 (89 days):Hotel room ........................................................................... $7,920Meals ................................................................................... 3,080 11,000

5) Amount paid that year for moving and storing personal effects(furniture, other household goods, etc.):Moving ................................................................................. $5,200Storage ................................................................................ 2,900 8,100

6) Family's traveling expenses to London:Travel ................................................................................... $1,176Meals ................................................................................... 90

Lodging ................................................................................ 160 1,426Total ...................................................................................................... $31,877

Moving and storage of personal effects ............................................... $ 7,000Travel (and lodging) to London ............................................................ 1,793Temporary living expenses ................................................................... 9,000Total reimbursement .......................................................................... $17,793

Page 15


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Mark and Mary Green 123 0 0 750 0

8,100

1,8 18

9,918

8,793

1,125

Washingt on, DC USA

London, England

OMB No. 1545-0062Foreign Moving Expenses3903-FForm Attach to Form 1040.

Department of the TreasuryInternal Revenue Service

AttachmentSequence No. 63

Your social security numberName(s) shown on Form 1040

City and country in which your old workplace was located 1

City and country in which your new workplace is located 2

Caution: If you are a member of the armed forces, see the instructions before completing this form.

Also, see Time Test on this page.

3 3

Travel and lodging expenses of moving from your old home to your new home. Do not includemeals (see instructions)

4

5 Add lines 3 and 4

Enter the total amount your employer paid for your move (including the value of services furnishedin kind) that is not included in the wages box (box 1) of your W-2 form. This amount should be

identified with code P in box 13 of your W-2 form

6

Subtract line 6 from line 5. Enter the result here and on Form 1040, line 25. This is your movingexpense deduction

7

Transportation and storage of household goods and personal effects (see instructions)

4

5

7

6

Form 3903-F (1997)Cat. No. 12493R

Is line 5 more than line 6?

Yes.

No.

Go to line 7.

You cannot deduct your moving expenses. If line 5 is less than line 6, subtract line 5from line 6 and include the result in income on Form 1040, line 7.

Purpose of Form

General Instructions

Use Form 3903-F to figure your movingexpense deduction if you are a U.S.citizen or resident alien who moved to anew principal place of work (workplace)outside the United States or itspossessions. If you qualify to deductexpenses for more than one move, usea separate Form 3903-F for each move.For more details, see Pub. 521, MovingExpenses.

Who May Deduct MovingExpensesIf you moved to a different homebecause of a change in job locationoutside the United States or itspossessions, you may be able to deductyour moving expenses. You may be ableto take the deduction whether you areself-employed or an employee. But youmust meet certain tests explained next.

Another Form You May HaveTo File

If you sold your main home in 1997, youmust file Form 2119, Sale of YourHome, to report the sale.

Distance Test

Note: UseForm 3903, MovingExpenses, instead of this form if youmoved from a foreign country to theUnited States or its possessions becauseof a change in the location of your job.

Form 3903 should also be used byretirees and survivors who qualify todeduct their expenses for moving from aforeign country to the United States orits possessions.

97


You may deduct your movingexpenses even if you have not met thetime test before your tax return is due.You may do this if you expect to meet

the 39-week test by the end of 1998 orthe 78-week test by the end of 1999. Ifyou deduct your moving expenses onyour 1997 return but do not meet thetime test, you will have to either:

Amend your 1997 tax return by filingForm 1040X, Amended U.S. IndividualIncome Tax Return, or

Time Test

If you are an employee, you must workfull time in the general area of your newworkplace for at least 39 weeks duringthe 12 months right after you move. Ifyou are self-employed, you must workfull time in the general area of your newworkplace for at least 39 weeks duringthe first 12 months and a total of atleast 78 weeks during the 24 monthsright after you move.

Your new principal workplace must be atleast 50 miles farther from your oldhome than your old workplace was. Forexample, if your old workplace was 3miles from your old home, your newworkplace must be at least 53 milesfrom that home. If you did not have anold workplace, your new workplace mustbe at least 50 miles from your old home.

The distance between the two points isthe shortest of the more commonlytraveled routes between them.

Page 16


17/19

Mark Green 123 0 0 750 0

7,000

1,79 3

9,000

17,79 3

7,000

1,79 3

9,000

Temporary living expenses$9,000

97

Employee Moving Expense Information(Rev. July 1997)

Payments made during the calendar year Department of the TreasuryInternal Revenue Service

(a) Amount paidto employee

Form 4782 (Rev. 7-97)

4782Form

Do not file.

Keep for your records.

Social security numberName of employee

Moving Expense Payments

(b) Amount paid to a thirdparty for employees benefit

and value of servicesfurnished in kind

(c) Total(Add columns (a) and (b).)

Instructions for employers are on the back.

Cat. No. 13079T

Transportation and storage of household goods

and personal effects

Travel and lodging payments for expenses ofmoving from old to new home. Do not includemeals

1

2

3

3

1

2

All other payments (list type and amount).Note: These amounts must be included in the

employees income and are subject to

withholding

4 Total. Add the amounts in column (c) of lines 1 through 3 4

OMB No. 1545-0182


Page 17


18/19

How To Get More Information

You can get help from the IRS in several ways.

Free publications and forms. To order free publica-tions and forms, call 1800TAXFORM (18008293676). You can also write to the IRS Forms Dis-tribution Center nearest you. Check your income taxpackage for the address. Your local l ibrary or post officealso may have the items you need.

For a list of free tax publications, order Publication910, Guide to Free Tax Services. It also contains anindex of tax topics and related publications and de-

scribes other free tax information services availablefrom IRS, including tax education and assistance pro-grams.

If you have access to a personal computer andmodem, you also can get many forms and publicationselectronically. See Quick and Easy Access to Tax Helpand Formsin your income tax package for details.

Tax questions. You can call the IRS with your taxquestions. Check your income tax package or tele-

phone book for the local number, or you can call18008291040.

TTY/TDD equipment. If you have access to TTY/TDDequipment, you can call 18008294059 to ask taxquestions or to order forms and publications. See yourincome tax package for the hours of operation.

Page 18


19/19

Tax Publications for Individual Taxpayers

General Guides

Your Rights as a TaxpayerYour Federal Income Tax (ForIndividuals)Farmers Tax GuideTax Guide for Small BusinessTax Calendars for 1998Highlights of 1997 Tax Changes

Guide to Free Tax Services

Specialized Publications

Armed Forces Tax GuideFuel Tax Credits and RefundsTravel, Entertainment, Gift, and CarExpensesExemptions, Standard Deduction,and Filing InformationMedical and Dental ExpensesChild and Dependent Care ExpensesDivorced or Separated IndividualsTax Withholding and Estimated TaxEducational Expenses

Foreign Tax Credit for IndividualsU.S. Government Civilian EmployeesStationed AbroadSocial Security and OtherInformation for Members of theClergy and Religious WorkersU.S. Tax Guide for AliensScholarships and FellowshipsMoving ExpensesSelling Your HomeCredit for the Elderly or the DisabledTaxable and Nontaxable IncomeCharitable ContributionsResidential Rental Property

Commonly Used Tax Forms

Miscellaneous Deductions

Tax Information for First-TimeHomeownersReporting Tip IncomeSelf-Employment TaxDepreciating Property Placed inService Before 1987Installment SalesPartnerships

Sales and Other Dispositions ofAssetsCasualties, Disasters, and Thefts(Business and Nonbusiness)Investment Income and ExpensesBasis of AssetsRecordkeeping for IndividualsOlder Americans Tax GuideFederal Tax Information onCommunity PropertyExamination of Returns, AppealRights, and Claims for RefundSurvivors, Executors, andAdministratorsDetermining the Value of DonatedPropertyMutual Fund DistributionsTax Guide for Individuals With

Income From U.S. PossessionsPension and Annuity IncomeNonbusiness Disaster, Casualty, andTheft Loss WorkbookBusiness Use of Your Home(Including Use by Day-CareProviders)Individual Retirement Arrangements(IRAs) (Including SEP-IRAs andSIMPLE IRAs)Tax Highlights for U.S. Citizens andResidents Going AbroadUnderstanding the Collection ProcessEarned Income CreditTax Guide to U.S. Civil ServiceRetirement Benefits

Tax Highlights for Persons withDisabilitiesBankruptcy Tax GuideDirect SellersSocial Security and EquivalentRailroad Retirement BenefitsIs My Withholding Correct for 1998?

Passive Activity and At-Risk RulesHousehold Employers Tax GuideTax Rules for Children andDependentsHome Mortgage Interest DeductionHow To Depreciate PropertyPractice Before the IRS and Powerof AttorneyIntroduction to Estate and Gift TaxesIRS Will Figure Your Tax

Per Diem RatesReporting Cash Payments of Over$10,000The Problem Resolution Programof the Internal Revenue Service

Derechos del ContribuyenteCmo Preparar la Declaracin deImpuesto Federal

Crdito por Ingreso del TrabajoEnglish-Spanish Glossary of Wordsand Phrases Used in PublicationsIssued by the Internal RevenueService

U.S. Tax Treaties

Spanish Language Publications

U.S. Individual Income Tax ReturnItemized DeductionsInterest and Dividend IncomeProfit or Loss From Business

Net Profit From BusinessCapital Gains and LossesSupplemental Income and Loss

Earned Income CreditProfit or Loss From Farming

Credit for the Elderly or theDisabled

Income Tax Return for Single andJoint Filers With No Dependents

Self-Employment Tax

U.S. Individual Income Tax ReturnInterest and Dividend Income forForm 1040A Filers

Child and Dependent CareExpenses for Form 1040A FilersCredit for the Elderly or theDisabled for Form 1040A Filers

Estimated Tax for IndividualsAmended U.S. Individual Income TaxReturn

Unreimbursed Employee BusinessExpenses

Sale of Your HomeUnderpayment of Estimated Tax byIndividuals, Estates and Trusts

Power of Attorney and Declarationof Representative

Child and Dependent Care Expenses

Moving ExpensesDepreciation and Amortization

Application for Automatic Extensionof Time To File U.S. IndividualIncome Tax ReturnInvestment Interest ExpenseDeductionAdditional Taxes Attributable toQualified Retirement Plans (IncludingIRAs), Annuities, and ModifiedEndowment ContractsAlternative Minimum TaxIndividualsNoncash Charitable Contributions

Change of AddressExpenses for Business Use of Your

Home

Tax Highlights for CommercialFishermen

910

595553509334225

171

Nondeductible IRAs (Contributions,Distributions, and Basis)

Passive Activity Loss Limitations

3378463

501

502503504505508

514516

517

519520521523524525526527529

530

531533534

537

544547

550551552554

541

555

556

559

561

564570

575584

587

590

593

594596721

901907

908

915

919

925926929

946

911

936

950

1542

967

1544

1546

596SP

1SP

850

579SP

Comprendiendo el Proceso de Cobro594SP

947

1040Sch ASch BSch CSch C-EZSch DSch ESch EICSch FSch H Household Employment TaxesSch R

Sch SE1040EZ

1040ASch 1

Sch 2

Sch 3

1040-ES1040X

2106 Employee Business Expenses2106-EZ

21192210

24412848

39034562

4868

4952

5329

6251828385828606

88228829

Tax Benefits for Adoption968

Informe de Pagos en Efectivo enExceso de $10,000 (Recibidos enuna Ocupacin o Negocio)

1544SP

Documents

US Internal Revenue Service: p521--1997