Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
durhamresidentNC
Level 1

moving expenses deductible after employer paid for part of the expenses; employer contribution was taxed

I changed employment in 2021 (filling after requesting an extension in April 2002).

My new employer reimbursed me for part of the moving costs (North Carolina - New York).

These reimbursements were listed as income on my W-2 and subsequently taxed, federal and state.

1) non-reimbursed moving costs can be fully deducted - correct ?

2) re the reimbursed costs that were subsequently taxed.  After tax, I had a net "in-your-pocket" amount from my new employer which was smaller than the gross amount which they initially forwarded to me.

Can I tax-deduct the difference gross-net of the moving costs that my employer covered  because the only thing that counts is the amount that has arrived at my end, to cover the costs of the move.

What did not get covered was out of my own pocket and thus deductible.  - Is my logic mistaken here ?

2 Replies
rjs
Level 15
Level 15

moving expenses deductible after employer paid for part of the expenses; employer contribution was taxed

Under the new tax law that was passed in 2017, there is no deduction on the federal tax return for moving expenses for years 2018 through 2025. (There is an exception for active-duty military members who are moving because of a permanent change of station, but that does not appear to apply to you.)


Your employer was correct to include the partial reimbursement in your W-2. It is just additional wages.


On your New York tax return you can exclude the employer's reimbursement from your New York income, and deduct unreimbursed moving expenses.

 

Opus 17
Level 15

moving expenses deductible after employer paid for part of the expenses; employer contribution was taxed

You can list moving expenses as an itemized deduction in the program.  They are not allowed for federal taxes, but will flow to your state, and may be deductible depending on your state and if you itemize deductions on your state tax return.  (NY does allow the deduction, if you itemize.)  If you report all your expenses and your taxable reimbursement, Turbotax will do the proper calculation.   As far as federal tax law is concerned, moving expenses are currently not deductible. You got a taxable bonus, and it doesn't matter what you spent it on. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
Dynamic AdsDynamic Ads
Privacy Settings
v