Moving Expenses and Taxes
It’s a common question that is frequently asked – what can I claim on my taxes? Before we dig into any details, first know that for your specific situation and any questions you have should be directed to a tax professional. Second, with how tricky taxes can be sometimes, you can never go wrong with saving all the receipts and pay statements and having your tax professional help sort it out as well.
For those who want to take a stab at what they can and cannot claim, let us look at how to determine what counts and what doesn’t.
Once you determine what you can and cannot claim for your situation, you can choose to itemize your deductions or not itemize. If you chose to not itemize your deductions, you can calculate it on IRS Form 3903 which can be found here a long with the instructions.
When you do have a PCS, it is always a good idea to keep all of your receipts so 1) you can verify that the government reimbursed you the right amount, 2) you can determine if you had any non-reimbursed expenses, and 3) to verify expenses vs reimbursements when it is tax time.
If you are preforming a Personally Procured Move (PPM), you need to know that your incentive pay is taxed at 22%. You can claim your operating expenses that will help to lower your taxable income. Items that can be reused are usually not authorized.