Due to the Tax Cuts and Jobs Act, the moving expense deduction is only allowed on federal returns for members of the armed forces. This article will help you enter moving expenses for clients who still qualify, as well as certain states that still allow the deduction.
To generate Form 3903:
- On the left-side menu, select Deductions.
- Click on Moving Expenses (3903).
- Select whether the Form 3903 applies to the Taxpayer, Spouse, or Joint.
- Check the box for Armed forces move due to permanent change of station, if applicable. This entry is mandatory for the federal deduction.
- Enter the Miles from old home to new work place and the Miles from old home to old work place.
- The program uses these amounts to perform the distance test for Form 3903. To meet the distance test, the taxpayer's new principal work place must be at least 50 miles farther from the old home than the taxpayer's old work place.
- Enter the actual cost of moving and storing household goods and personal effects in Transportation and Storage of Goods.
- Include amounts reimbursed to the taxpayer if they weren't included on Form W-2 as wages. This amount prints on Form 3903, line 1.
- Enter any Lodging and Travel expenses excluding meals.
- Enter the amount of Other allowance or reimbursements not on Form W-2, if applicable.