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Author: rpi2001 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120820  
Subject: Moving Expenses Date: 1/2/2002 2:21 PM
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As this is my first time doing my taxes, and the first time I have had a "real job", there are many things I was previously unaware of.

I have since been given some good advice on looking into tax ramifications *before* entering into transactions, but since I was not so wise before, I have a question.

Apparently certain aspects of moving expenses are deductible on your tax return. When I was offered my job I was offered reimbursement for my moving expenses, or a lump sum payment. Since I had just graduated and didn't have much to move, and was very cash poor - I took the money.
My question is - Does this get reported as income? And can any of it be deducted as a "moving expense"? I admit, I have not gotten too in depth yet - but all of the information I have found so far through the IRS involves the deduction of certain aspects of moving, and does not cover a "lump sum payment"

Thanks in advance,
Katie
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Author: Charlie48K Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 56634 of 120820
Subject: Re: Moving Expenses Date: 1/2/2002 4:19 PM
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My question is - Does this get reported as income? And can any of it be deducted as a "moving expense"? I admit, I have not gotten too in depth yet - but all of the information I have found so far through the IRS involves the deduction of certain aspects of moving, and does not cover a "lump sum payment"

Yes, it's income. Some of your expenses are probably deductible. See IRS Publication 17 for full explanation of what's deductible.

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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 56668 of 120820
Subject: Re: Moving Expenses Date: 1/3/2002 2:29 AM
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When I was offered my job I was offered reimbursement for my moving expenses, or a lump sum payment. Since I had just graduated and didn't have much to move, and was very cash poor - I took the money.

Yes, the lump sum is income to you and will be reported on your W-2. You'll deduct your allowable moving expenses as an "adjustment to income," which means that you can deduct them even if you don't itemize deductions.

See IRS Publication 521 and Form 3903.

Phil Marti
VITA Volunteer

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Author: 2195501y Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 56774 of 120820
Subject: Re: Moving Expenses Date: 1/4/2002 6:07 PM
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When I was offered my job I was offered reimbursement for my moving expenses, or a lump sum payment.

It is income. You report it as income on your tax form.

Then, collect your receipts for moving expenses (truck rental and such).
Sum them up, and fill the amount in the 'moving expenses' line on your tax form. This amount will be deducted from your income.

You may break even. If you don't break even, and have some monies left over...well, you managed to make some money on your moving. If you did not keep the receipts, try to recover copies from truck rental place and such.

2195501y


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