Deducting Moving Expenses (IRS Form 3903)

[mrwizard]

What is the name of your state? California

Hello, my questions are in regard to my Federal Income Tax.

I recently moved about 50 miles away to work at a new job. My new company paid for the expenses, but much of the expense was listed as taxable income on my W-2 as wages. Despite the fact that the moving expenses came from my empolyer and not out-of-pocket, I am assuming that any tax that I paid on these moving expenses is deductible (if I meet the distance, time requirements). Is this assumption correct?

The second question, related to the moving expenses, is specific to the distance test outlined in Tax form 3903 (Moving Expenses). My question is, what method will the IRS use to calculate the distance. According to google maps, my old work used to be 16 miles from my old home, where my new work is 64 miles from my old home. So, the difference is 47.5 miles (65-17.5). I'm sure that I can find another freeway, street route that meets the 50 mile limit, but I am unsure as to how the IRS workers will measure the difference (using google maps?). Can anyone advise how the IRS confirms that the distance test? Can anyone speculate as to how much flexibility the IRS would allow for this test?

Best,
mwWhat is the name of your state?

 

[Snipes5]

The tax code isn't "flexible", and the state of CA is even less so.

If the distance between your old home and your old workplace, and your new home and your new workplace is less than 50 miles, you can't deduct moving expenses, period.

Incidentally, if the mileage were sufficient (they don't let you choose a longer route so you can meet the criteria!), you would only be permitted to deduct actual moving expenses, not the tax you paid on the reimbursement.

"Federal Income Tax" is not a deduction on a federal return, nor on any state return that I am aware of.

Snipes

 

[mrwizard]

The tax code isn't "flexible", and the state of CA is even less so.

If the distance between your old home and your old workplace, and your new home and your new workplace is less than 50 miles, you can't deduct moving expenses, period.

Snipes

OK, I understand what you're saying, and I listed my question poorly. My main question remains: What does the IRS use to measure the distance? Is it per the driving distance, or as the crow files? Google maps and Yahoo maps don't match, so if 1 says that I'm < 50 miles, and the other says I'm > 50 miles, then who can I belive? Also, these driving distances are listed as distances minimized to reduce driving time, and not minimized in terms of miles.

mw

 

[LdiJ]

OK, I understand what you're saying, and I listed my question poorly. My main question remains: What does the IRS use to measure the distance? Is it per the driving distance, or as the crow files? Google maps and Yahoo maps don't match, so if 1 says that I'm < 50 miles, and the other says I'm > 50 miles, then who can I belive? Also, these driving distances are listed as distances minimized to reduce driving time, and not minimized in terms of miles.

mw

Well..its certainly NOT "as the crow flies"....so you can rule that out.