Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Returning Member
posted Feb 18, 2021 8:34:50 PM

Are moving expenses deductible at the state level, CA, if all three requirements are met?

I'm seeing mixed messages on the board about what is deductible. I moved for a job that meets the distance requirement, I've been here for a year, and while I received a sign-on bonus, it was part of my income and receipts were not required by my company.

0 1 1468
1 Best answer
Expert Alumni
Feb 22, 2021 2:26:26 PM

Yes, moving expenses are deductible on your CA tax return.  You will have to complete the Moving Expenses interview under Deductions and Credits > Other Deductions and credits. This will generate a Form 3903 that should transfer to your CA state tax interview.

 

From 2020 Instructions for Schedule CA (540) California Adjustments - Residents

 

Line 13 Moving Expenses – California does not conform to federal law regarding the suspension of the deduction for moving expenses, except for members of the Armed Forces on active duty. Non-military taxpayers prepare federal Form 3903, Moving Expenses, using California amounts. If you have excess moving expense reimbursements, enter the amount of moving expenses from line 3 of federal Form 3903 on Schedule CA (540), line 13, column C. If your reimbursements are less than your moving expenses, enter the amount of moving expenses from line 5 of federal Form 3903 on Schedule CA (540), line 13, column C.

1 Replies
Expert Alumni
Feb 22, 2021 2:26:26 PM

Yes, moving expenses are deductible on your CA tax return.  You will have to complete the Moving Expenses interview under Deductions and Credits > Other Deductions and credits. This will generate a Form 3903 that should transfer to your CA state tax interview.

 

From 2020 Instructions for Schedule CA (540) California Adjustments - Residents

 

Line 13 Moving Expenses – California does not conform to federal law regarding the suspension of the deduction for moving expenses, except for members of the Armed Forces on active duty. Non-military taxpayers prepare federal Form 3903, Moving Expenses, using California amounts. If you have excess moving expense reimbursements, enter the amount of moving expenses from line 3 of federal Form 3903 on Schedule CA (540), line 13, column C. If your reimbursements are less than your moving expenses, enter the amount of moving expenses from line 5 of federal Form 3903 on Schedule CA (540), line 13, column C.