My firm reimbursed $3000 of relocation expenses, but some of those included meals, househunting trip expenses etc, which are not tax-deductible under the rules I seem to be reading online. However on my w-2 in box 12, the amount is $3000.

When I'm figuring out the excess of what I was reimbursed and what I paid, do I use the $3000 since that is the amount on my W-2, or only the part of the $3000 which is tax deductible?

Also, is it OK if my excess expenses amount to approx $4500 but I don't have any receipts for them?

Thanks!

Priyanka89:

If $3,000 is reported on your W-2, you will pay taxes on that amount no matter how much of it is reported as deductible on Form 3903 (Moving Expenses). Do not report ANY of that $3,000 as reimbursements on Form 3903. That entry is only for reimbursements that was not reported on your W-2.

As for reporting expenses without receipts, it will be okay as long as it is reasonable. An amount as small as $4,500 in moving expenses will not raise any eyebrows at the IRS.

Yes it was.. thanks!

They won't ask questions even if my total income that year (because I started work in july) was only 27K?

Priyanka89:

No questions. Such circumstances happen all the time.