Under the new tax law, would it be possible to exclude relocation reimbursement from income or put in W2-12d as P-code if I incurred it in 2017 but received in Feb-2018?

[leximax]

I have recently filed 2017 taxes and received my refund. There, I'd some qualified excludable moving expenses under W-2 column 12d (code P). However, I had not submitted all of relocation expenses that I incurred during year 2017 due to the fact that most of receipt were for Dec-2017. Towards the same, I will be getting additional reimbursement sometime next month. Given the new tax law eliminates "excludable moving expense", I will be now taxed for that remaining relocation reimbursement and it will be not be considered excludable. I like to know if I can amend 2017 tax form or request in 2018 taxes to consider remaining reimbursement I receive this month as tax-excludable given it was for year 2017 or there is no way to exclude it as I was paid in year 2018? Deduction is of little value as I take standard deduction! 

Thanks!

Lexi

[Anita01 · Accepted solution]

No, there would be no way to make the reimbursement excludeable in 2017, since you did not receive it until 2018.  The only option for you would be to take the deduction in 2017.  This deduction goes on line 26 of your 1040 and decreases your Adjusted Gross Income.  You can take it whether you itemize or not.  I would advise you to take any moving expense for which you expect to be reimbursed as an expense in 2017.  Worst that can happen is the tax law is changed to allow moving reimbursements to be tax free in 2018.

Instructions to amend 2017

https://ttlc.intuit.com/questions/1894381-how-to-amend-change-or-correct-a-return-you-already-filed#

[leximax]

Thanks for details and about deduction which can lower my AGI. In that case, should I file amended 2017 1040 return, and add qualified (but yet to reimbursed in 2018) relocation expenses on line 26 under deductions or file under 2018 return next year?

[leximax]

Sorry! Your answer already states so to take deduction in 2017. In that case, I will file amended 2017 return. Thanks again for details.