Form 3903

AAA

DEFINITION of 'Form 3903 '

A tax form distributed by the Internal Revenue Service (IRS) and used by taxpayers to deduct moving expenses related to taking a new job. If a taxpayer has moved more than once for a job, then a separate Form 3903 is used for each qualifying move. Reasonable moving expenses, such as the cost of hotels visited while moving, can be deducted.




INVESTOPEDIA EXPLAINS 'Form 3903 '

In order to deduct moving expenses the new workplace must meet both a distance and a time test. The new place of employment must be at least 50 miles farther from the old residence than the old workplace was. The taxpayer must also work full time at the new job for at least 39 weeks in the year after the move unless disability, transfer or termination change the taxpayer's employment status.


Guidance for Form 3903 is found in IRS Publication 521. The form is filed in conjunction with Form 1040 or Form 1040R.


Members of the armed forces do not have to meet the distance and time requirements that other taxpayers are required to meet in order to claim expenses. In addition, retirees or survivors who move to a new home in the U.S. only have to meet the distance requirement if the taxpayer's old home and old job were outside the country

RELATED TERMS
  1. Deduction

    Any item or expenditure subtracted from gross income to reduce ...
  2. Tax Return

    1. The tax form or forms used to file income taxes with the Internal ...
  3. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
  4. 1040 Form

    The standard Internal Revenue Service (IRS) form that individuals ...
  5. Tax Deductible Interest

    A borrowing expense that a taxpayer can claim on a federal or ...
  6. Section 7702

    The section of the United States Internal Revenue Code that defines ...
RELATED FAQS
  1. How do I calculate my effective tax rate using Excel?

    Your effective tax rate can be calculated using Microsoft Excel through a few standard functions and an accurate breakdown ... Read Full Answer >>
  2. How important are contingent liabilities in an audit?

    Contingent liabilities, when present, are very important audit items because they normally represent risks that are easily ... Read Full Answer >>
  3. Why are some spin-offs taxable and some are tax-free?

    The manner in which a parent company structures the spinoff and divests itself of a subsidiary or division determines whether ... Read Full Answer >>
  4. What is the optimal level of withholding tax to enter on my W-4?

    Most workers in the United States have part of their income withheld from each paycheck. This step is required by the federal ... Read Full Answer >>
  5. How can I calculate my withholding tax rate?

    Your withholding tax rate is estimated by your employer, who relies on the information on your Form W-4. How you fill out ... Read Full Answer >>
  6. How are impaired assets treated under U.S. accounting rules?

    Under the generally accepted accounting principles (GAAP), impaired assets are addressed in Statement 144 and the Impairment ... Read Full Answer >>
Related Articles
  1. Entrepreneurship

    10 Tax Benefits For The Self-Employed

    Running your own business has both personal and financial perks.
  2. Taxes

    An Overview Of Itemized Deductions

    Not taking the standard deduction this year could save you hundreds of dollars.
  3. Taxes

    Simple Last-Minute Tax Tips

    A little preparation and organization can take the stress out of last-minute tax filing.
  4. Taxes

    Tax Deductions You May Be Missing

    Knowing the tax deductions you're entitled to can make or break your bank account.
  5. Taxes

    5 Tax Credits You Shouldn't Miss

    If you're not taking advantage of these deductions, you could be missing out on tax savings.
  6. Taxes

    10 Most Overlooked Tax Deductions

    The receipts you cram into your wallet could be replaced with cash come tax season.
  7. Economics

    Why Working Doesn't Add Up For Many Women

    A type of tax deduction for Japanese stay-at-home wives puts a barrier on women working full time in the country.
  8. Home & Auto

    What Are The Tax Advantages Of Buying A Home?

    Don't forget these deductions and credits that homeowners can use to reduce their tax bill.
  9. Taxes

    Understanding Income Tax

    Income tax is a levy many governments place on revenue of entities within their jurisdiction.
  10. Professionals

    New Tax Pitfalls to Avoid

    Although the normal litany of adjustments have been made to the tax code, there are several more unique issues that taxpayers must contend with.

You May Also Like

Hot Definitions
  1. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  2. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  3. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
  4. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  5. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  6. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
Trading Center