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zer0bahamut
New Member

My company relocated me, and paid for my moving expenses. Since they paid these expenses, are they tax deductible?

My company provided me with a full detailed list of all expenses they provided for my relocation package.  All of these expenses were reported in box 1 of my W2 - nothing was reported in box 12 with a P.  Some of my expenses I paid taxes on - but others, such as lodging and shipping my belongings, I did not.  Can I claim the cost of lodging and shipping those belongings?
1 Reply
DS30
New Member

My company relocated me, and paid for my moving expenses. Since they paid these expenses, are they tax deductible?

Yes, you will be able to deduct any eligible moving expenses that were included in your taxable income (Box 1 of W-2) or for which you did not receive a reimbursement (out-of-pocket expenses).

Not deductible  - If your company reimbursed you for your moving expenses and did not include this amount in your taxable income on your W-2. (In this case, since you are not recognizing the reimbursement as income, you are not allowed to take a deduction for these reimbursed expenses.)

Yes deductible - If your company reimbursed you and included the reimbursement amount as part of taxable income on your W-2 or if your reimbursement was not included in your taxable income but the relocation expenses exceed your company's reimbursement amount (you can claim the difference).

Once you have signed into your TurboTax Account (for TurboTax Online sign-in, click Here), select "Take Me To My Return" and type "moving expenses" in the search bar then select "jump to moving expenses". TurboTax will guide you in entering this information

You will claim these moving expenses on Form 3903 and they will not affect your ability to claim a standard deduction.

Alternatively, to enter your moving expenses in TurboTax Online or Desktop, please follow these steps:

  1. Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
  2. Next click on “Deductions & Credits” ("Personal Income" in TurboTax Home & Business)
  3. Next click on "jump to full list" or (I’ll choose what I work on or see all tax breaks)
  4. Scroll down the screen until to come to the section “Other Deductions and Credits”
  5. Choose "show more", then Moving Expenses and follow the onscreen instructions
  6. If you are able to meet the IRS moving expense requirements, you will enter the lodging information on the screen that is titled "Enter your moving expense"

According to the IRS, if you moved due to a change in your job or business location, or because you started a new job or business, you may be able to deduct your reasonable moving expenses but not any expenses for meals.

Please refer to these links related to moving expenses: IRS - Moving Expenses and Moving Expense Deduction


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