topic Re: Living Allowance in Get your taxes done using TurboTax

Living Allowance

CSAVARIO — Fri, 22 Jan 2021 20:25:32 GMT

I was relocated for a project that was suspected to be greater than 1 year.

I was only relocated for a total of 8 months & my company moved me back to my primary residence. When I received my W2 it showed the allowance as taxable.

I am no longer with the company & they will not do anything about my W2.

Is there a way for me to have it handled via the tax software or having a tax professional do it?

Thanks

-C

Re: Living Allowance

ThomasM125 — Fri, 22 Jan 2021 20:42:52 GMT

If the reimbursement was for moving expenses, you may be able to enter a deduction for them on your tax return. You can use the following link to see if you qualify:

irs.gov/help/ita/can-i-deduct-my-moving-expenses

You would enter it in TurboTax by using the following tabs:

Deductions and Credits
Other Deductions and Credits
Moving Expenses

Re: Living Allowance

CSAVARIO — Fri, 22 Jan 2021 22:46:42 GMT

Hi ThomasM125 & thanks!

The overall allowance over the timeframe was for rent & incidentals associated with the rental.

It also covered the move out.

Overall it comes to a substantial amount.

Thanks

-C

Re: Living Allowance

ThomasM125 — Tue, 26 Jan 2021 20:13:30 GMT

Rent would not be a moving expense. Under the old tax rules, you could deduct it as travel expense since it was temporary, but that is not an allowed deduction anymore on your federal return. You can enter the expenses as employee business expenses in TurboTax, since it may be deductible on your state tax return. Only the moving expense portion might qualify as a deductible moving expense on your federal return.