In box 12, code P we have $63,213. This is the amount paid by the employer for moving related expenses directly to vendors. Will we in turn be taxed on on this?

Forum|Forum|7 years ago
June 6, 2019
7 replies
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The amount in question was for taking care of our home in our home state and the loss that company took when they sold the home after paying us MORE for it than they were able to sell it for.

TurboTax Self Employed Online

SweetieJean

Alumni - Champ

P—Excludable moving expense reimbursements paid directly to a
member of the U.S. Armed Forces (not included in box 1, 3, or 5)

SweetieJean

Alumni - Champ

You mention "employer" and "company," but code P relates to Armed Forces Personnel.

SweetieJean

Alumni - Champ

Is this for 2017?

DoninGA

Level 15

That is for tax year 2018.
For tax year 2017 -Code P—Excludable moving expense
reimbursements paid directly to employee. Show the
total moving expense reimbursements that you paid
directly to your employee for qualified (deductible) moving
expenses

SweetieJean

Alumni - Champ

Right, I realized that after I posted.

Opus 17

Level 15

For 2017, that is not taxable income and should not be included as part of your box 1 wages.

It is not year clear to me if that changed for 2018, but this seems to be a W-2 you already have, so no problem.

SweetieJean

Alumni - Champ

This is from the 2018 W-2 on the IRS website:
P—Excludable moving expense reimbursements paid directly to a
member of the U.S. Armed Forces (not included in box 1, 3, or 5)

SweetieJean

Alumni - Champ

Suspension of exclusion for qualified moving expense reimbursements.

The Tax Cuts and Jobs Act (Public Law 115-97) temporarily suspends the exclusion for qualified moving expense reimbursements under section 132(a)(6) and (g). However, the exclusion still applies for a member of the Armed Forces of the United States on active duty who moves under a military order to a permanent change of station. This change is effective for taxable years beginning after December 31, 2017, and before January 1, 2026. See P.L. 115-97, section 11048 and Code P—Excludable moving expense reimbursements paid directly to a member of the U.S. Armed Forces for more information

https://www.irs.gov/pub/irs-pdf/iw2w3.pdf

Opus 17

Level 15

Thanks. I knew the moving expense deduction was eliminated, but I wasn't sure about direct reimbursement to an employee under an accountable plan. That is indeed suspended for 2018, except for military.