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Hello, after putting in my moving expenses, I only saw a very small difference in taxes due. I'm confused about why I can't deduct the full moving expense amount.

 
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Hello, after putting in my moving expenses, I only saw a very small difference in taxes due. I'm confused about why I can't deduct the full moving expense amount.

Your moving expenses are reduction of taxable income (not subject to tax), not a dollar for dollar increase in your refund as is the dependent related Earned Income Credit.

For instance, if you are in the 20% tax bracket, and you claim one $2,000  in moving expenses, your tax due will decrease by about $400.


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