They were also included as Wages in box 1 of the W2. I am not sure if I need it itemize all moving expenses in the moving expense section when I file. IM confused as to if I can just enter the W2 information as it is, or if I have to deduct moving expenses? Also some was LUMP SUM, and some was EXACT AMOUNT re-imbursements. But it is listed in BOX 14 as one number, all combined.
Let's keep it simple; 1) enter your W-2 precisely as shown (box 12 & 14 too) and 2) enter all of your employee moving expenses. TurboTax will do the rest. This is one of the few, highly beneficial deductions, so while it may take some time to enter, it can be worthwhile. Now, I'll explain what will happen.
Moving expense reimbursements reported in box 14 are included in your W-2 box 1 wages, which means you pay tax on them. Therefore ALL of your moving expenses, will qualify for the deduction. If you had amounts in box 12 code P, that means they weren't included in your box 1 wages (which ultimately means they can't be deducted because you already got them tax free).
Even if you had box 12 code P moving expenses, you should still enter all of your qualified moving expenses in the software. Any expenses in excess of this amount will qualify for the deduction.
To enter these expenses, log in to TurboTax and follow the steps below: