The need to enter expenses when the W-2 shows a code P is only to allow that amount to remain nontaxable. Only certain expenses are deductible and sometimes an employer will pay you for extra things,. like an extra week in a hotel when you arrive, and then they include these nondeductible amounts in the code P total. so, the entry of moving expense in that case is just to verify that they only paid eligible expenses. If the eligible expenses you enter are less than the code P amount, the excess is added to your taxable wages.
