Moving Expenses?

Question

My fiance was paid a "relocation bonus" of $5000, he received $3300 after taxes. He moved 160 miles due to a job transfer.

Nothing on his W-2 states that he was paid for moving expenses, the amount appears to have been included in his income.

Can he deduct moving expenses? What is deductable?

I still don't know the correct answer??

His out of pocket expenses were not over $3300, which is what he received after taxes from his employer. Assuming that he can only deduct transportation and storage.

Now...if his employer included it with his wages, does that mean he didn't "technically" receive a relocation expense?

Answer 1

If his moving expenses were included in his taxable wages on his Form W2, he can claim the out-of-pocket costs that he directly paid related to the move.

He can take the deduction if he meets the time test, i.e. he works full time at the new job for at least 39 weeks in the 12 months immediately following the move.

He must also meet the distance test. The distance moved must be more than 50 miles further than his previous one-way commute. As long as his old commute was less than 110 miles each way, he's good to go on that requirement.

Answer 2

He can deduct moving expenses, which are transportation and storage of household goods, and travel from the old home to the new home.

He does not subtract reimbursement, since the relocation money received was included in his taxable income by his employer.

Form 3903 is used to figure the deduction.

http://www.irs.gov/pub/irs-pdf/f3903.pdf

Answer 3

Check the posting info in box 14 you will see the moving expense bonus postings in there I suspect .

I would still work through the worksheet on moving expenses. People miss many items that they can deduct, such as : meals, lodging, storage, tolls, mileage, etc.
If the amount on the worksheet in anyway exceeds the company reimbursement you can exclude that amount on your taxes

Answer 4

Hey Riannaa this doesn't pertain to the question you are asking now, but to the question you had asked me about if I had recieved that letter from the IRS the answer is no. They have been mailing that out forever and who knows when i'll get it but when I do I will let everyone know what it says( they say I should have it this week ). Now are you going thru the same thing as me? Im sorry to post this here.