I was reimbursed for all moving expenses by my company and they did a relocation gross up to cover taxes. However, I have an amount in box 12 with code P that I was reimbursed for that was separate from the gross-up. Turbotax is adding this amount to my taxable income, and because it wasn't part of the gross up, no tax assistance was provided by my company for that amount. I am unsure how to fill out the moving expense deduction Form 3903, because I was reimbursed for everything I paid for. The real issue is the code P 'excludable reimbursement' is being included in total income that I'm responsible for. How do I proceed?
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You have to fill out form 3903 to claim the moving deduction to prevent the code P amount from becoming taxable. Because some many employers reimburse moving expenses that are not tax deductible, the IRS makes you jump thru these hoops to be sure tax is paid on the reimbursement for non deductible stuff.
Type> moving expenses for a job related move <in the find box. Do enter ONLY the code P amount when asked if you were reimbursed
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