2007 General Instructions
A Change to Note
For 2007, the standard mileage rate for using your vehicle to move to a new home is 20 cents a mile.
Purpose of Form
Use Form 3903 to figure your moving expense deduction for a move related to the start of work at a new principal place of work (workplace). If the new workplace is outside the United States or its possessions, you must be a U.S. citizen or resident alien to deduct your expenses.
If you qualify to deduct expenses for more than one move, use a separate Form 3903 for each move.
For more details, see Pub. 521, Moving Expenses.
Who May Deduct Moving Expenses
If you moved to a different home because of a new principal workplace, you may be able to deduct your moving expenses. You may be able to take the deduction whether you are self-employed or an employee. But you must meet both of the tests explained next.
Your new principal workplace must be at least 50 miles farther from your old home than your old workplace was. For example, if your old workplace was 3 miles from your old home, your new workplace must be at least 53 miles from that home. If you did not have an old workplace, your new workplace must be at least 50 miles from your old home. The distance between the two points is the shortest of the more commonly traveled routes between them.
If you are an employee, you must work full time in the general area of your new workplace for at least 39 weeks during the 12 months right after you move. If you are self-employed, you must work full time in the general area of your new workplace for at least 39 weeks during the first 12 months and a total of at least 78 weeks during the 24 months right after you move.
What If You Do Not Meet the Time Test Before Your Return Is Due? If you expect to meet the time test, you may deduct your moving expenses in the year you move. But if you do not meet the time test, you must either:
If you do not deduct your moving expenses in the year you move and you later meet the time test, you may take the deduction by filing an amended return for the year you moved. To do this, use Form 1040X.
Exceptions to the Time Test. The time test does not have to be met if any of the following apply:
More Information. For more information on the time test, see Pub. 521.
Members of the Armed Forces
If you are in the armed forces, you do not have to meet the distance and time tests if the move is due to a permanent change of station. A permanent change of station includes a move in connection with and within 1 year of retirement or other termination of active duty.
How To Complete This Form If You Are a Member of the Armed Forces
Do not include on lines 1 and 2 any expenses for moving services that were provided by the government. If you and your spouse and dependents are moved to or from different locations, treat the moves as a single move.
On line 4, enter the total reimbursements and allowances you received from the government in connection with the expenses you claimed on lines 1 and 2. Do not include the value of moving services provided by the government. Complete line 5 if applicable.
Retirees or Survivors Living Outside the United States
If you are a retiree or survivor who moved to a home in the United States or its possessions and you meet the following requirements, you are treated as if you moved to a new workplace located in the United States. You are subject to the distance test.
Retirees
You may deduct moving expenses for a move to a home in the United States if you are the spouse or dependent of a person whose principal workplace at the time of death was outside the United States.
Survivors
You may deduct moving expenses for a move to a new home in the United States when you actually retire if both your old principal workplace and your old home were outside the United States. In addition, the expenses must be for a move (1) that begins within 6 months after the decedent’s death, and (2) from a former home outside the United States that you lived in with the decedent at the time of death.
You may choose to deduct moving expenses in the year you are reimbursed by your employer, even though you paid the expenses in a different year. However, special rules apply. See How To Report in Pub. 521.
Filers of Form 2555
If you file Form 2555, Foreign Earned Income, to exclude any of your income or housing costs, report the full amount of your deductible moving expenses on Form 3903 and on Form 1040. Report the part of your moving expenses that is not allowed because it is allocable to the excluded income on the appropriate line of Form 2555. For details on how to figure the part allocable to the excluded income, see Pub. 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad.
Specific Instructions
You may deduct the following expenses you paid to move your family and dependent household members. Do not deduct expenses for employees such as a maid, nanny, or nurse.
Moves Within or to the United States or its Possessions. Enter the amount you paid to pack, crate, and move your household goods and personal effects. You may also include the amount you paid to store and insure household goods and personal effects within any period of 30 days in a row after the items were moved from your old home and before they were delivered to your new home. Enter the amount you paid to travel from your old home to your new home.
Moves Outside the United States or its Possessions. Enter the amount you paid to pack, crate, move, store, and insure your household goods and personal effects. Also, include the amount you paid to move your possessions to and from storage and to store them for all or part of the time the new workplace continues to be your principal workplace.
TIP: You do not have to complete this form if you moved in an earlier year, you are claiming only storage fees during your absence from the United States, and any amount your employer paid for the storage fees is included in the wages box of your W-2 form. Instead, enter the storage fees on the "Moving expenses" line of Form 1040, and write "Storage" next to the amount.
Enter the amount you paid to travel from your old home to your new home. This includes transportation and lodging on the way. Include costs for the day you arrive. Although not all the members of your household have to travel together or at the same time, you may only include expenses for one trip per person.
If you use your own car(s), you may figure the expenses by using either:
You may add parking fees and tolls to the amount claimed under either method. Keep records to verify your expenses.