When you receive reimbursement for moving expenses, you need to file Form
3903 to reconcile your total moving expenses compared to the
reimbursement. The reimbursed moving expenses will be considered income
on your tax return until you enter the moving expenses into TurboTax. If
you have more expenses than what was reimbursed, you will be able to take a
deduction for this amount. If your reimbursement was more than your
expenses, the excess would become taxable income.
Form 3903 is not supported on the Federal free version of TurboTax.
However, if you don't qualify for Federal free, you may qualify for the freedom
edition which has less forms restrictions. It is important to note that
the Freedom edition does not save your returns in a Tax Timeline, so you would
want to make sure you save your own copy after filing. In order to use
the Freedom edition, one of the following must be true:
- Adjusted
gross income is less than $31,000
- Active
duty military and adjusted gross income is less than $62,000
- You
qualify for Earned Income Credit
Please refer to the link below to use the Freedom edition. You may
need to open this in another browser to avoid the TurboTax you already started
from loading.
https://turbotax.intuit.com/taxfreedom/
The following instructions will allow you to enter your moving
expenses. You should enter the total
amount of expenses. Your reimbursements
should have been entered in Box 12 of your Form W-2 as Code P. Your total moving expenses that are entered
will automatically be reduced by the amount of employer reimbursements.
If you
are using TurboTax Online, except Home & Business
- Click on Federal Taxes
- Click on Deductions & Credits
-
Check your list for Moving Expenses and
click Start/Edit; if it is not there, please proceed with the rest of the
steps
- Click on Check for other tax breaks
- Click on Jump to full list
- Scroll down to Other
Deductions and Credits and click Show more
- Click on Start/Edit next to Moving Expenses
If you
are using TurboTax Desktop or TurboTax
Online Home & Business
- Click on Federal Taxes (Personal if using Home & Business)
- Click on Deductions & Credits
- Select I'll choose what I work on
- Scroll down to Other Deductions and
Credits
- Click on Start/Update next to Moving Expenses
