I added moving expenses, but was reimbursed by my employer. Turbotax displays employer reimbursement as $0. Do I qualify for the deduction if my employer already paid?

[xmasbaby0]

No.   Moving expenses are not deductible on a federal tax return, per the tax laws that changed for 2018 and beyond.   (Exception----certain active duty members of the military).

https://ttlc.intuit.com/questions/4482873-which-federal-tax-deductions-have-been-suspended-by-tax-re...

[AamilD]

It depends. Moving expenses in most cases do not qualify as a deduction. The 2017 Tax Cuts and Jobs Act changed the rules for claiming the moving expense deduction. For most taxpayers, moving expenses are no longer deductible, which means you can no longer claim this deduction on your federal return. This change will stay in place for tax years 2018-2025.

However, if you serve in the active military, you may qualify for a deduction. Additionally, even if you don't qualify for the federal deduction, some states do allow a deduction for moving expenses.

Additionally, if you were reimbursed for the moving expenses,  this may count as an income on your tax return.

Please visit Moving Expenses for more information. 

[Carl]

Because of the TCJA enacted in 2018, with few exceptions moving expenses are no longer deductible. Additionally, reimbursed moving expenses by the employer are included in box 1 of your W-2 as taxable income.

[Mike9241]

the employer should have included the reimbursement in line1 of your w-2.

[d_goldsmith]

TurboTax implies to me that if it's a moving expense related to work relocation, you worked there for at least 39 weeks in the 12 months after moving, and the move made you much closer to work, that you would be elligible? I also was looking for "how to put in the employer reimbursement" numbers, because I assumed maybe only that portion was deductible.

[DoninGA]

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@d_goldsmith wrote:

TurboTax implies to me that if it's a moving expense related to work relocation, you worked there for at least 39 weeks in the 12 months after moving, and the move made you much closer to work, that you would be elligible? I also was looking for "how to put in the employer reimbursement" numbers, because I assumed maybe only that portion was deductible.

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Moving expenses are not deductible on a federal tax return unless you are active military on Permanent Change of Station orders.  Some states have moving expenses as a deduction and the TurboTax state program will cover this if it is available.

[xmasbaby0]

Per the tax laws that changed for 2018 and beyond, moving expenses are not deductible on a federal return except for certain active duty members of the military.

There are several states that allow a deduction for moving expenses on the state return:  AZ, AR, CA, HI, IA, MA, MN, NJ, NY, PA and VA  You can enter your moving expenses in the federal software and the information will flow to your state return.

[d_goldsmith]

It does not seem to have "flowed" to my IA return at all, though it may have, the state returns don't seem to have a summary like Federal that explains calculations.

If I can convince my employer to amend my W2 and list this reimbursement as box 12 Code L, shouldn't that be tax free? I just went back to my W2 and tried this to see if it would work and for some reason TurboTax didn't change anything after I had added a code L $9000 entry in box 12 of this W2

[Opus 17]

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@d_goldsmith wrote:

It does not seem to have "flowed" to my IA return at all, though it may have, the state returns don't seem to have a summary like Federal that explains calculations.

If I can convince my employer to amend my W2 and list this reimbursement as box 12 Code L, shouldn't that be tax free? I just went back to my W2 and tried this to see if it would work and for some reason TurboTax didn't change anything after I had added a code L $9000 entry in box 12 of this W2

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Moving expenses are not eligible to be reimbursed tax-free, except for active duty military.  Code L is not allowed for moving expenses.  If the employer pays your moving expenses, that is treated like a wage bonus, and is taxable as a wage bonus.  (But getting 60% of your cost covered is better than nothing!)

Since the stipend is taxable wages, you are allowed to list it in the program, but whether it flows to your state depends on your state law and income tax situation; does your state allow a deduction for moving expenses, and will you be taking the standard deduction or itemized deduction in your state. 

[AbrahamT]

So basically what it boils down to is that your are saying that although you would not be entitled to have those moving expenses as a tax free deduction on the federal, it may nonetheless be deducted on your Indiana return depending if you itemize. What you would like to know is where the moving expense deduction would be reported on the federal side inorder that it should calculate as a deduction in Indiana? Correct?

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all your personal information removed. You can send one to us by following the directions below. 

Turbotax Online:

    1- Sign into your online account.

    2- Locate the Tax Tools on the left-hand side of the screen.

    3- A dropdown will appear. Select Tools

    4- On the pop-up screen, click on "Share my file with agent"

    5- This will generate a message that a diagnostic file gets sanitized and transmitted to us.

    6- Please provide the token number that was generated in the response. 

Turbotax Desktop Version: 

      1- Open your return.

      2- Click the Online tab in the black bar across the top of TurboTa and select " Send Tax File to Agent"

      3- This will generate a message that a diagnostic copy will be created. Click on OK and the tax file will be sanitized and                  transmitted to us.

      4- Please provide the Token Number that was generated in the response.