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Level 2
April 24, 2020
Question

Military moving expense deduction

  • April 24, 2020
  • 2 replies
  • 39 views

I have a Military client who received a W-2 for moving expenses with taxable wages in box 1.  He had a small amount in Box 12 with code P.  Can he use the taxable wages as a moving expense deduction?

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2 replies

itonewbie
Level 15
April 24, 2020

If the military included those as taxable wages but excluded an amount with Code P, there are two possibilities:

  1. Those are expenses paid by the military but are not qualified moving expenses; or
  2. Those are nonaccountable relocation allowances.

If it's the latter, you will need to determine the amount of qualified moving expenses your client actually incurred (but not already excluded) so that you can take a deduction on the return.

---------------------------------------------------------------------------------Still an AllStar
Level 4
April 24, 2020

I'm thinking this was a DITY move.  See Pub 521 for military rules.