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June 1, 2019
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I received a lump sum payment to assist with my work-related relocation. The rest of the relo was not included in my taxable income. Where can I deduct the lump sum?

  • June 1, 2019
  • 1 reply
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Best answer by DS30

It depends -

You cannot deduct the lump sum to assist with your relocation that was included as income on your W-2 but you will be able to deduct all the expenses related to your move which you paid using this lump sum distribution.

According to the IRS, if you moved due to a change in your job or business location, or because you started a new job or business, you may be able to deduct your reasonable moving expenses but not any expenses for meals.

Please refer to these links related to moving expenses and the eligibility requirements: IRS - Moving Expenses and Moving Expense Deduction

To enter moving expenses in TurboTax, log into your tax return (for TurboTax Online sign-in, click Here and click on "Take me to my return") type "moving expenses" in the search bar then select "jump to moving expenses". TurboTax will guide you in entering this information

1 reply

DS30Answer
Employee
June 1, 2019

It depends -

You cannot deduct the lump sum to assist with your relocation that was included as income on your W-2 but you will be able to deduct all the expenses related to your move which you paid using this lump sum distribution.

According to the IRS, if you moved due to a change in your job or business location, or because you started a new job or business, you may be able to deduct your reasonable moving expenses but not any expenses for meals.

Please refer to these links related to moving expenses and the eligibility requirements: IRS - Moving Expenses and Moving Expense Deduction

To enter moving expenses in TurboTax, log into your tax return (for TurboTax Online sign-in, click Here and click on "Take me to my return") type "moving expenses" in the search bar then select "jump to moving expenses". TurboTax will guide you in entering this information