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How do I account for relocation compensation that was included in box 1 of my W-2?

I initially entered my reimbursement under moving expenses but after I filed, I saw that Form 3903 line 4 states "Enter the total amount your employer paid you for the expenses listed on lines 1 and 2 that is not included in box 1 of your Form W-2 (wages)."

Do I get to deduct my entire moving costs instead of the moving costs in excess of my reimbursement?

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1 Reply
DS30
New Member

How do I account for relocation compensation that was included in box 1 of my W-2?

Yes, you would be allowed to deduction the full cost of your moving expenses because your company included the costs are part of your box 1 W-2 income.

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

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