Question

Joanna is a Master Sergeant in the U.S. Air Force. In June of 2019, her duty station changed from Offutt Air Force Base in Nebraska to Lackland Air Force Base in Texas. She drove 918 miles and spent $1,300 to move her household items. Joanna also incurred costs of $880 when she sold her home in her former city. Included on her Form W-2, in box 12, is code P for $1,484. Joanna's moving expenses adjustment is _______.

Answer 1

Joanna's moving expenses adjustment is $ 1300 only.

Ie.  ( $1,300 to move her household items )

We can claim the reasonable amount that we paid for moving with house hold items.

(She cannot claim that cost of $880 when she sold her home in her former city .

Usually costof selling the old home also can claim.But here cannot since Included on Form W-2, in box 12, is code P.

Form W-2, in box 12, is code P

P — Excludable moving expense reimbursements paid directly to a member of the U.S. Armed Forces. (not included in Boxes 1, 3, or 5).So we cannot take here as expenses.