Moving expenses rules for taxpayers in the military

Moving expenses rules for taxpayers in the military

If you are a taxpayer who serves in the military, from time to time you are highly likely to have to move from one location to another.  Some of the moving expenses that are incurred during the course of the relocation process can sometimes not be reimbursed, but if this does happen then you can have them deducted from your income simply by filling out Form 3903.

The US government will often provide storage services or help to reimburse members of the United States for the costs involved with moving for members of the military.  If this is the case, you do not need to include these reimbursements or services in your income.  If you are given any kind of temporary lodging allowance, this is also excluded from your income.

Should the full amount of the reimbursements or allowances that you get from the government be in excess of the total expenses involved in the move, the excess is then treated as being part of your income and it will then appear on your Form W2.  Should any reimbursement or allowance end up being more than the full cost of moving and not included on your Form W2, the amount will have to be included on the seventh line of form 1040 of your gross income.

Form 3903 can be used to deduct any expenses in excess of your reimbursements and allowances from the government.

Rick Wozniak