Moving Expense Deduction and Reimbursements?


I

Inka Dinka

I recently moved from NY to CA for a new job. My employer
paid a number of moving expenses, and I understand that
those payments are taxable to me. My employer paid some of
these directly (e.g., the movers and my new house closing
costs) while I paid a number of them (meals, hotel,
apartment) and received a reimbursement.

My question is this: Can I still deduct the expenses
associated with the move from my income taxes when I file
them next April?

Thanks!
 
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A

A.G. Kalman

Inka said:
I recently moved from NY to CA for a new job. My employer
paid a number of moving expenses, and I understand that
those payments are taxable to me. My employer paid some of
these directly (e.g., the movers and my new house closing
costs) while I paid a number of them (meals, hotel,
apartment) and received a reimbursement.

My question is this: Can I still deduct the expenses
associated with the move from my income taxes when I file
them next April?
The only moving expenses that are deductible are the cost of
transporting your household effects and your cost of travel
including lodging to the new location. If your employer paid
these directly, the employer should not include those
payments in your 2003 income. You can only take those
deductions if you actually incurred the expense or your
employer included those amounts in your income. All other
items are not deductible. You need to check with your
employer to see if any tax assistance (generally in the form
of extra income and tax withholding) is included in your
annual income statement.

See IRS Pub 521 Moving Expenses for more details:
http://www.irs.gov/publications/p521/index.html
 
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H

Harlan Lunsford

Inka said:
I recently moved from NY to CA for a new job. My employer
paid a number of moving expenses, and I understand that
those payments are taxable to me. My employer paid some of
these directly (e.g., the movers and my new house closing
costs) while I paid a number of them (meals, hotel,
apartment) and received a reimbursement.

My question is this: Can I still deduct the expenses
associated with the move from my income taxes when I file
them next April?
In general, yes.

Your employer should give you a form with expenses broken
down. There are some limits however, so not all of his
reimbursements may be fully or partly deductible.

Cheer$,
Harlan Lunsford, EA n LA
 

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