I changed jobs in 2017 and my new company gave me a relocation bonus to use for house hunting and other things. So can I still deduct my house-hunting trips even though they gave me this bonus?
Side note: They paid for moving all our stuff with movers. So I did not pay anything out of pocket for that...
Assuming you meet the time and distance test (see IRS Pub 521 Moving Expenses for details on moving expense) you are allowed a deduction for certain moving expenses. The cost of moving your household goods is a deductible moving expense. As you did not pay for it, there is no deduction for that. The cost of traveling to your new location for you and other members of your household would be a deductible moving expense if you incurred the cost out of pocket.
House hunting trips and other stuff is not tax deductible. That is why most companies provide cash assistance to cover those items. The amount of the relocation bonus should be reflected in Box 1 of your W-2 as wages.
Note that starting in 2018, only the military will be allowed to deduct moving expenses.
Anything they paid you or the movers is taxable to you _unless_ you could have deducted it under the time-and-distance tests Alan mentioned previously. In other words:
1) The relocation allowance is taxable. 2) The amount paid to the movers is taxable unless you meet the tests and your employer knew that. 3) It used to be the case you could deduct travel expenses for one additional trip between your old metropolitan area and the new one. I think that died in the 1990s, but check IRS Publication 521 to confirm. 4) I believe 2017 law allows you to deduct or exclude transportation for you and your goods, and storage of your goods gor up to 30 days.
Anything they paid you or the movers is taxable to you _unless_ you could have deducted it under the time-and-distance tests Alan mentioned previously. In other words:
1) The relocation allowance is taxable. 2) The amount paid to the movers is taxable unless you meet the tests and your employer knew that. 3) It used to be the case you could deduct travel expenses for one additional trip between your old metropolitan area and the new one. I think that died in the 1990s, but check IRS Publication 521 to confirm. 4) I believe 2017 law allows you to deduct or exclude transportation for you and your goods, and storage of your goods for up to 30 days.
Pub 521 has a very detailed example at end of book. Specifically says house hunting trips are non deductible.
The two biggest issues I have seen with company paying for moving is :
Warning the company/ company accountant should know this and is including the payment in your w-2. So your are paying taxes on it even if not specified to you as such.
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.