Get Form 3903

Since the Tax Cuts and Jobs Act (TCJA) was passed in 2017 by President Trump, many people are no longer able to deduct moving expenses on their federal taxes. TCJA makes it simple – If you moved after 2018 and are not an active member of the Military or Armed Forces, you cannot deduct moving expenses.

Moving expenses are considered adjustments to income. So, you can deduct them even if you don't itemize your deductions. To deduct moving expenses, you must meet one of these tests: Closely-related-in-time test — You must incur the expenses within one year from the date you first reported to your new work.

The Tax Cuts and Jobs Act of 2017 made it so only military members and their families can deduct moving expenses from 2018 through 2025.

Which moving expenses can I deduct? You can deduct expenses (if not reimbursed or furnished in kind) for: Moving household goods and personal effects, and • Travel. Moving household goods and personal effects.

So, to answer the question, are relocation expenses taxable, the answer is yes. Moving expenses, including lump sum payments, are considered taxable income, which means the employee is responsible for paying both federal and state (if applicable) income tax on the amount.

This means that you are no longer able to claim this moving tax deduction on your federal return. This change is effective for the tax years of 2018 to 2025. If you moved before 2018 and did not claim any moving expenses, you can most likely file an amended claim so you can deduct any moving expenses.

When you're calculating your NYAGI you can subtract your moving expenses and the reimbursement received during the tax year from your Federal Adjusted Gross Income (FAGI). You can also claim the expense in the year you were reimbursed, not the year of your move.

Shipping and storage costs for packing and moving your household goods and personal effects go on line 1 of Form 3903. Travel, lodging, and gas costs go on line 2. Reimbursements from your employer for any moving expenses are reported on line 4.