2018 Moving expenses with non-conforming state

[DW3]

I moved to Minnesota in 2018 and was reimbursed in 2018. My employer reported relocation expenses as income on my W-2 gross earnings per the Tax Cuts and Job Act of 2017. The reimbursements include the following dollar amounts, all of which are taxable:

•Money paid to me for out-of-pocket expenses

•Money paid on behalf of me to vendors (moving company) 

•Lump sum amount given to me prior to actual move/spend to use as needed

•Tax assistance / gross-up 

I learned that Minnesota does not conform to the Tax Cuts and Job Act of 2017, allowing deductions on moving expenses. Given this, which of the above amounts are deductible? For the lump sum amount, I will need to review what amount I used for moving expenses that are eligible for deduction, right? And not the total paid to me?  

[PhyllisG · Accepted solution]

You can claim the following moving expenses for Minnesota:

• Moving household goods and personal effects
• Traveling from your old home to your new home
• Lodging (but not meals) while traveling to your new home

You can include the qualified moving expenses associated with the lump sum amount, but not the entire deduction. 

You will need to complete two forms to claim the deduction:

1. Schedule M1MOVE, Moving Expenses
2. Schedule M1NC, Federal Adjustments

As you navigate through the TurboTax program, it will guide you on the amounts you should enter as qualified moving expenses.  It will also do the calculations for you.

[jloveless03]

I'm not seeing any place to complete this form for MN.