Can I claim relocation expenses paid by employer? They were all included on my W-2 in Box 1.

Forum|Forum|7 years ago
May 31, 2019
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S

svnitparas

Employee

My company paid me a lump sum relocation amount(A) and also taxes on it (amount B). Both A&B are included in my W-2 under box 1. Can I deduct this amount as moving expense while filing my tax return ? What if my actual expense(amount C) of moving/shifting/travelling etc was less than amount A, can I still deduct amount A & B as moving expense or if I can only deduct amount C as my moving expense ? Does IRS asked for the proof of actual expense ?

A

ALSkinn

I thought that under the Tax Cuts and Jobs Act (https://www.irs.gov/newsroom/tax-reform-changes-qualified-moving-expense-reimbursements) moving expenses are now taxable wages. This makes it sound like they are still tax deductible. Can you explain?

X

xmasbaby0

Employee

@ALSkinn

The reason you are seeing such confusing information in this thread is that when TurboTax migrated old answers from the previous user forum "Answer Xchange" to the new user forum, "Real Money Talk" the old threads moved over with May and June 2019 dates, even if they were old.

The new tax law says you cannot deduct moving costs unless you are active duty military. There are some states which will still allow a deduction for moving expenses, but they are NOT deductible on your 2018 federal return.

https://ttlc.intuit.com/questions/4482873-which-federal-tax-deductions-have-been-suspended-by-tax-reform

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**