Consumption and Real Estate
The company gives the lum sum for my relocation. Can I still deduct my moving expenses for my tax return?
Question : The company gives the lum sum for my relocation. Can I still deduct my moving expenses for my tax return?
The lum sum company gave is before tax.
relocation moving
Best answer:
Answer by wartz
You have to reduce any moving expense adjustment by your reimbursement.
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#2 written by ninasgramma 1 year ago
Did you fill out a request for reimbursement for your moving expenses, and the employer paid that? If yes, and this covers all the expenses, you have no taxes owed on the money and you do not include any moving expenses on your tax return. If there are extra expenses for which you were not reimbursed, include only those on Form 3903.
If your employer gave you a lump sum and did not require you to fill out a reimbursement form, then this lump sum should be included as wages on your W-2. When you get your W-2, check that your moving expenses are in Box 1. Then you will fill out your Form 3903 and deduct all expenses.
If your employer gave you a lump sum, did not require you to fill out a reimbursement form, and did not include the money on your wages (Box 1) of Form W-2, then fill out Form 3903 but subtract your employer reimbursement from your deductible expenses.
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#3 written by v b 1 year ago
Look at your W-2. Was the reimbursement included in box 1 of your W-2?
If yes, then you fill out form 3903 and show total expenses for the move.If no, the amount is already pre-tax and you are “even’ and you would only fill out the form 3903 if you had additonal expenses that you were entitled to deduct.
See chart in publication 521.
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#4 written by Spock (rhp) 1 year ago
what you want to do is net the amount they gave you against your actual expenses. the result is Moving Expense and can be taken as part of Itemized Expenses if you itemize.
this allows the company’s money to pay, tax free, for as much of your actual moving costs as possible.
see instructions to Form 1040, Schedule A, and the instructions you can find by searching for “moving expense” on the irs.gov website
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You can only deduct those expenses that were GREATER than the lump sum. In other words, if they gave you $ 2000, but the move cost you $ 3000, then you have $ 1000 hat might be deductible. As with most things, your ability to deduct moving expenses is going to depend on a host of other things, including income, other deductions, and credits.
If, on the other hand, the company paid you MORE than what you actually spent, you may have taxable income to you. Most software applications and tax professionals will take a look at this to ensure that you file correctly – just let them know everything. Tell them how much you got, and how much you spent in total, not just that you can use the “$ 1000″ as earlier discussed. This information is needed to properly fill out the forms necessary.