As long as the list shows what the expenses are and what is being paid back there will be options for you. The moving expense is limited on what is an allowable deduction. The employer may show amounts on your W2 that were excludable from your income and the taxable portion would be included in box 1 with the rest of your taxable wages.
Box 12, code P is used for Exclusionary
moving expense reimbursements and
is not included in your income.
Also if you deduct moving expenses then you may not deduct the expenses for
which you were reimbursed. Therefore, if any
moving expenses were paid to you that were not an allowable deduction they
would have been included in your taxable wages.
- Amounts repaid in 2016 that were included on your W2 with code P, if repaid can be deducted as moving expenses when they are paid if you meet the qualifications.
- Click the link here for the qualifications: Guide
to IRS Form 3903: Moving Expense
- To record moving expenses in TurboTax Deluxe Desktop follow these steps:
- In the search box type moving expense expense for a job related move
- Jump to moving expense for a job related move
- Follow the prompts to review and complete your entry
- Amounts you repay in 2016 that were considered taxable wages can be used as a "repayment of previously taxed income" if you were taxed on the income one year and then repay it the next year.
-
Repayment of
$3,000 or less.If
the amount you repaid was $3,000 or less, deduct it from your income in
the year you repaid it.You must deduct it as a miscellaneous itemized
deduction, enter it on Schedule A (Form 1040), line 23. See
steps for TurboTax below.
- I've
included a link to the IRS website for your reference: Publication
525-Taxable-Nontaxable Income (Repayments)
- To record repayments of less than $3000 follow these steps in Turbo Tax Deluxe Desktop:
- Federal Taxes > Deductions & Credits > Continue > I'll choose what I work on
- Scroll to Other Deductions & Credits > Select Other Deductible Expenses
-
Click the screenshot attached to enlarge and view for assistance.
-
Note: Any repayments in the same tax year as the reimbursement from your employer should be reflected on the W2.
If repayments of taxable moving expenses were greater than $3,000 in one tax year further information is in the publication and they are reported differently.
