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Military moving expense deduction

Level 1

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 2
Level 15

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 3

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

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