Quote:
Originally Posted by AvonUserCAIN Hi,
I started new job in Indiana on April 1st 2013.
I traveled alone and lived in a hotel, rented shared accommodation, rented car until I moved to Indiana. I've moved to Indiana on Jun 1st 2013 with family.
#1;Can I claim expenses from April 1st to Jun 1st in 2013? If so, in what form?
#2;Are daily expenses like meal and gas deductible as well? Is so, in what form to submit claim.
#3;Note I did receive a lump sum from employer for moving expenses(specific to house hunting, hotel stay, meal expenses during the time and Misc), some portion was paid to me directly, which showed up in W2, some are paid directly to 3rd party(for house hold goods and car moving), which are not shown in my W2.
THanks. |
#1;on a temporary work assignment,The IRS allows travel deductions when you are away from your tax home. If you routinely spend time in more than one place, the location where you spend the majority of your working time is your tax home;
Aslongas you travel away from home on business may deduct related expenses, including the cost of reaching your destination, the cost of lodging and meals and other ordinary and necessary expenses. You are considered “traveling away from home” if your duties require you to be away from home substantially longer than an ordinary day’s work and you need to sleep or rest to meet the demands of your work. The actual cost of meals and incidental expenses may be deducted or you may use a standard meal allowance and reduced recordkeeping requirements. Regardless of the method used, meal deductions are generally limited to 50 percent as stated earlier. Only actual costs for lodging may be claimed as an expense and receipts must be kept for documentation. Expenses must be reasonable and appropriate; deductions for extravagant expenses are not allowable. Although commuting costs are not deductible, some local transportation expenses in Indiana are. Deductible local transportation expenses include the ordinary and necessary expenses of going from one workplace (away from the residence) to another. If you have an office in your home that you use as your principal place of business for your employer, you may deduct the cost of traveling between your home office and work places associated with your employment. You need to use Form 2106 if you were an employee deducting ordinary and necessary expenses for your job.Generally, EE expenses are deductible only on line 21 of Sch A of 1040.. Do not file Form 2106 if none of your expenses are deductible because of the 2% limit on miscellaneous itemized deductions.
For moving exp deduction, then, your move must be closely related, both in time and in place, to the start of work at your new location. Closely related in time generally means you can consider moving expenses incurred within 1 year from the date you first reported to work at the new location as closely related in time to the start of work. Closely related in place generally means that the distance from your new home to the new job location is not more than the distance from your former home to the new job location. as you are an EE, you must work full-time for at least 39 weeks during the first 12 months immediately following your arrival in the general area of your new job location. If you pay to have your household items and personal effects packed and shipped by a company, you can deduct the costs for packaging and shipping from your taxable income. You may also deduct the shipping costs for vehicles and family pets.
#2;as mentioned above.no meal costs deductible Moving expenses are figured on Form 3903 ,and deducted as an adjustment to income on Form 1040 . You cannot deduct any moving expenses covered by reimbursements from your employer that are excluded from income.
#3;aslongas your ER provides reimbursement that does not meet the guidelines of an accountable plan, the reimbursement is taxable to you and must be recorded as wages, salary and is therefore recorded in box 1 of Form W-2. Nonqualified moving expense reimbursements reported in boxes 1, 3, and 5 of
Form W2 are subject to income tax withholding and social security
and Medicare taxes and you can’t deduct it on your return.
If an employer does not reimburse for moving expenses as a result of a job move, you may be able to deduct these expenses on an income tax return. as the employer pays the moving expenses to a third party, such as a storage facility, he should not include the information on your Form W-2. This includes cash payments or "payments in kind" the employer makes to secure the third party's services on behalf of the employee.The IRS allows deduction of reasonable expenses for moving household and personal items to a new home. These expenses can include the cost of a moving company or move-related travel or hotel expenses. Meals are excluded from allowable expense deductions.