“I moved from another state to take another job within my company, is this deductible?”----->In general, yes;however, it depends. As you have moved because of a job, because you were relocated in your current job from another state, you can most likely deduct all of your moving expenses from your taxes during that tax year. In order to be eligible, you need to have moved at least 50 miles farther from your old home to your work, or if you are starting a new job, you must move 50 miles away from your old house.Secondly, you must work full time for at least 39 weeks after relocating in the job in another state.
“If so, I was given a relocation amount, that was given to me in "post-tax" dollars, meaning my YTD earning were much higher then they normally would have been.”----->Yes. The way your employer reimburses you for your moving expenses will have an effect on how much you are taxed for them. Certain types of reimbursment plans(accountable plan) are not included with your wages on W2 on tax forms, and are therefore not taxed(so, if you were fully reimbursed and the reimbursements were not included in your taxable income on W2.) As long as you get paid under what the IRS calls non-accountable plan, you will be taxed as part of your income on W2 and you can deduct your moving expenses on From 3903.The reimbursement is taxable to you , the employee and must be recorded as wages, salary and other pay and is therefore recorded in box 1 of Form W-2. Non-accountable plan reimbursement that is excess payments to an employee not returned to the employer is reported on your W2 and is taxable.
My questions are as follows;
“1. I had to sell my car, at a loss, is that counted against the relocation amount?”-----> No; you cannot deduct the loss.
“2. Can I include everything needed to move out and move in (i.e. boxes, cleaning services, storage, moving trucks, purchase of new items for my new place, mileage)”----->Your deductible moving expenses include the cost of transporting your family's personal effects to the new location. Whether you hire a moving company or rent a truck yourself, your actual expense is deductible. However, although you can include the labor costs when hiring movers, you cannot increase your deduction for the value of your own labor. You can also include the expense for transporting yourself and family members to the new location, which includes the cost of an overnight stay in a hotel on the way if necessary. You can ALSO deduct the cost of packing, crating, or otherwise preparing goods to be shipped. You can also deduct transport costs for pets or if you are shipping a vehicle. Utility connection and disconnection fees are also deductible. In the case of your storage costs, you can deduct up to 30 days of storage between the day you leave your last home in another state to the day you arrive in your new home in the new state.
“3.What other items should I be bringing with me when I go to have my taxes prepared?”----->As you satisfy the time and distance tests for purposes of claiming the moving expense deduction, Form 3903 requires you to report the expenses you incur to relocate.As long as the amount on Form 3903 line 4 is larger than the amoun t on line 3, you need to report the amount on 1040 line 7 as your taxable wage.
Please visit the IRS website here:
http://www.irs.gov/pub/irs-pdf/f3903.pdf
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