Hi,

I relocated from Illinois to California in Feb 2007 for my job. My employer took care of all my relocation expenses but added these expenses in my W2 as taxable income (Box 1 under wages). According to the IRS website, I can claim deductions for relocation. So, can I claim deductions by filling out form 3903?

Thanks
Satish

Yes - see Pub 521 for how to take the deduction:

http://www.irs.gov/pub/irs-pdf/p521.pdf

If you have reimbursements shown in Box 1 you can deduct your expenses (for those items the IRS allows) on form 3903. Did your employer report anything in Box 12 with reason code P? If so, then you can deduct only those expenses that are deductible and that exceed the amount shown there.

Thanks for the information. My employer added about $8000 in Box 1 and about $150 in Box 12. Out of the $8000, I figured out that about $2000 would be eligible for deductions based on the IRS information (moving of household goods etc). So, I guess the deductions would be $2000 - $150 = $1850