christopher-dunn
New Member

My moving reimbursement was reported on form 1099, so I am paying self-employment taxes on it.

My employer has two subsidiaries. I am an employee of one, but the other paid my moving stipend. As a result, I was issued a 1099-MISC for that income. Should I consider this a reimbursement, or simply a bonus?
DianeW
Expert Alumni

Deductions & credits

You can call it a reimbursement, and if you didn't receive any "nontaxable" reimbursement (should be in box 12, of the W2 with a code "P") you should enter your moving expenses, if you qualify under the tax law, to see if some of the income can be reduced.

Moving expenses are deductible when they are related in both time and distance to the start of a new job at the new location.  If you meet the qualifications you may be able to use this deduction.  Do not include any expense that was reimbursed by your employer that is not included in your wages (pre-tax reimbursements) if applicable to you.

  • Guide to IRS Form 3903:  Moving Expense
  • Time Test:  If you are an employee, you must work full time for at least 39 weeks during the first 12 months after you arrive in the general area of your new job location (39-week test). Full-time employment depends on what is usual for your type of work in your area.  If you are self-employed, you must work full time for at least 39 weeks during the first 12 months and for a total of at least 78 weeks during the first 24 months after you arrive in the general area of your new job location (78-week test).

    Distance Test :  Click the chart attached to enlarge and view.

    To enter your moving expenses in TurboTax (online or desktop) follow the steps here.
  • Use the search box upper right > Search for moving  > Jump to moving > 
  • Follow the prompts to enter your allowable moving expenses
  • Click the blue hyper-links for more information about your specific circumstances.