I am being asked to upgrade to Turbo Tax Deluxe because we had excess moving expense reimbursement.

[justjackie9]

I am a little confused, since we got reimbursed by the company why would we need to file this on our taxes?

[AnnaB]

When you receive reimbursement for moving expenses, you need to file Form 3903 to reconcile your total moving expenses compared to the reimbursement.  The reimbursed moving expenses will be considered income on your tax return until you enter the moving expenses into TurboTax.  If you have more expenses than what was reimbursed, you will be able to take a deduction for this amount.  If your reimbursement was more than your expenses, the excess would become taxable income.

Form 3903 is not supported on the Federal free version of TurboTax.  However, if you don't qualify for Federal free, you may qualify for the freedom edition which has less forms restrictions.  It is important to note that the Freedom edition does not save your returns in a Tax Timeline, so you would want to make sure you save your own copy after filing.  In order to use the Freedom edition, one of the following must be true:

• Adjusted gross income is less than $31,000
• Active duty military and adjusted gross income is less than $62,000
• You qualify for Earned Income Credit

Please refer to the link below to use the Freedom edition.  You may need to open this in another browser to avoid the TurboTax you already started from loading.

https://turbotax.intuit.com/taxfreedom/

The following instructions will allow you to enter your moving expenses.  You should enter the total amount of expenses.  Your reimbursements should have been entered in Box 12 of your Form W-2 as Code P.  Your total moving expenses that are entered will automatically be reduced by the amount of employer reimbursements.

If you are using TurboTax Online, except Home & Business

1. Click on Federal Taxes
2. Click on Deductions & Credits
3. Check your list for Moving Expenses and click Start/Edit; if it is not there, please proceed with the rest of the steps
4. Click on Check for other tax breaks
5. Click on Jump to full list
6. Scroll down to Other Deductions and Credits and click Show more
7. Click on Start/Edit next to Moving Expenses

If you are using TurboTax Desktop or TurboTax Online Home & Business

1. Click on Federal Taxes (Personal if using Home & Business)
2. Click on Deductions & Credits
3. Select I'll choose what I work on
4. Scroll down to Other Deductions and Credits
5. Click on Start/Update next to Moving Expenses