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pjane2009 · Feb 2, 2012, 03:54 PM

I got a new job and I moved to a new city. The Company gave me X amount (gross) as relocation bonus (said on my offer-letter) and I got Y amount in-hand as rest (X-Y) amount was gone as tax on it. My W2 amount (box 1) includes this (X-Y) amount, I.e. My W2 box 1 amount is my total salary (before tax) for 2011 the X amount. My W2 box 12 has NO entry with code P on it. When filing my taxes, can I claim moving expenses? While claiming and adding expenses I paid for moving, do I need to enter any amount in the Employee Reimbursement field? If so, how much would that be?

MukatA · Feb 2, 2012, 11:35 PM

Box 1 includes Y amount or X-Y amount? Also does it also include X amount?

pjane2009 · Feb 3, 2012, 06:19 AM

Box 1 includes X amt where
X = amt they promised as relocation as said on offer letter (gross);
Y = amt I got in hand after they withheld tax from it;
X-Y = the tax they withheld on amount X

Box 1 contains all my income for 2011 before tax withholding + X dollars

ebaines · Feb 3, 2012, 06:51 AM

Thanks for the clarification that "Box 1 includes X amt" - now it makes sense.

If Box 1 includes the full X amount and Box 12 does not mention code P then yes, you can deduct moving expenses. Also - boxes 2, 4, and 6 should include the taxes that were withheld from he bonus as well as taxes withheld from your paychecks - do they?

pjane2009 · Feb 3, 2012, 11:34 AM

Yes, box 2,4,6 do include the taxes I paid on the bonus and paychecks..
Also, what all in included in moving expense.. When I moved to the new city I had to stay in a hotel for few days as my new home wasn't ready.. Can I count that into moving expense as temporary lodging? Are cab fares to new home from airport or hotel included? Or rent-a-car?
And I recently got a 1099G from California for the year 2010 when I was there for 3 months n paid state tax. Is it of any use?

Thanks a lot for all your help! :-)

JennTardogno · Feb 3, 2012, 12:09 PM

Also you can keep all of your receits and show them when filing and they will deduct it

pjane2009 · Feb 3, 2012, 12:21 PM

I don't have all receipts, but I can show them my credit card statements and which entry is marked there.. Would that be all right?

JennTardogno · Feb 3, 2012, 12:29 PM

Not sure but ut woildnt hurt to try. Always keep your receits next time. Just in case

JennTardogno · Feb 3, 2012, 12:31 PM

Sorry my tablet has a typo and Im extremely tired right now. Got to go but I hope that helped. You can also call H&R Block and they can answer all of your questions. Or wherever you do your taxes at. That's what I did

ebaines · Feb 3, 2012, 12:42 PM

There are specific expenses that the IRS allows you to deduct, for example you can deduct only one night's hotel stay at the new location, and travel expenses - but not living expenses once you get to the new location. Hence cab fares (except perhaps for a ride from airport the day you arrive), rental car, and food are not deductible. See IRS publication 521 for details: http://www.irs.gov/publications/p521/index.htmln

pjane2009 · Feb 3, 2012, 01:04 PM

Ok.. Thanks a lot for your help!

MukatA · Feb 4, 2012, 06:17 AM

This is from Pubication 521.
You can deduct the cost of transportation and lodging for yourself and members of your household while traveling from your former home to your new home. This includes expenses for the day you arrive.
You can include any lodging expenses you had in the area of your former home within one day after you could no longer live in your former home because your furniture had been moved.

This includes expenses for the day you arrive. Arrive where? To the city or new home. If it is new home (new home is mentioned in the first sentence), you can deduct lodging.
Also you do not need receipts. Credit card statement that proves the expenses is enough.
Use Form 3903. Your U.S. Tax Return: Moving Expenses

pjane2009 · Feb 4, 2012, 08:34 AM

Well.. I arrived into the city, but had to stay in a Hotel for first few days as my apartment wasn't ready, but my job joining day had started.. So, does the hotel stay cost as moving expense? Or should I deduct only 1st day hotel expense?

ebaines · Feb 6, 2012, 06:55 AM

From Pub 521:

Travel expenses. You can deduct the cost of transportation and lodging for yourself and members of your household while traveling from your former home to your new home. This includes expenses for the day you arrive. [emphasis mine].

I interpret this to mean that you can deduct one night's lodging. So no - the rest of your hotel stay is not a moving expense - it's a living expense which came about due to the arrangement you have with your land lord, and is not deductible. Take some consolation in knowing that for the days you had to pay lodging costs at least you did not have to pay rent.