@ebrahimm777 wrote:
Hi @Opus 17 , all.
So, I'm reading in some websites that "You should also take a moving deduction if your employer included your reimbursement with wages in box 1 of Form W-2". Is this true, and does it apply to my case?
That is, can I report any/some/all of: (a) the total moving expense reported under box 1; (b) the actual moving expense reported in box 14; and/or (c) the tax assistance; as a deductible moving expense in my tax return?
Also, is there a difference between the federal tax vs. state tax (California, where my new company is) for this deduction, if applicable at all?
It doesn't really matter how your employer accounts for the payment internally. If they call it $5000 moving assistance and $3000 tax assistance, or just an $8000 bonus, it is all taxable and should be included in your W-2 box 1 taxable wages.
The federal deduction for moving expenses was eliminated in 2018 tax reform. You may be looking at older articles. (Also note, the contents of this forum were migrated from the old platform to the new one in 2019 and many older posts got re-dated, so unfortunately there are posts here with old info and new dates.)
You can list your moving expenses in turbotax, turbotax will apply them to your state tax return if that is still allowed in your state and if you would actually receive a tax benefit. The amount of moving expenses you report is the actual amount you spent, regardless of whether it was more, less or the same as the employer payment. If audited, the state will come looking to you to prove your expenses with receipts. This web page has the old IRS rules for what moving expenses can be deducted. Remember this deduction will not be allowed on your federal return even if you entered it, but it will carry over to state if allowed.
https://www.irs.gov/newsroom/deducting-moving-expenses
