wagner@uw-june (Dave Wagner) (02/15/85)
I have a question about the moving expense deduction. Last year I moved
out of a well-paying job in California into a poorly paying "job" as
a student in Washington. Naturally, even though my moving expenses
were minimal, I'd like to deduct them, poor student that I now am.
However, careful examination of the 3903 form reveals that moving
expenses are defined as expenses incurred in moving to a new residence
as a result of a change in employment. What does that mean for me?
Will the IRS tell me that I don't qualify because I moved in order to
go to school?
If it would help any, I could claim that I did move here for reasons
of employment change (I do work for the university part
time as a Teaching/Research Assistant.)
However, I can file a form which states that the work I do is
a requirement for my degree and thus duck taxes on the income.
But if I do this, am I screwing my claim for a moving expense deduction?
Anxiously awaiting enlightenment...
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"Oh no! I've got . . . . . HAPPY FEET!"
Dave Wagner
University of Washington Comp Sci Department
wagner@{uw-june.arpa|washington.arpa}
{ihnp4|decvax}!uw-beaver!uw-june!wagnerjohnson@hplabsc.UUCP (Mark Scott Johnson) (02/19/85)
>I have a question about the moving expense deduction. Last year I moved >out of a well-paying job in California into a poorly paying "job" as >a student in Washington. Naturally, even though my moving expenses >were minimal, I'd like to deduct them, poor student that I now am. >However, careful examination of the 3903 form reveals that moving >expenses are defined as expenses incurred in moving to a new residence >as a result of a change in employment. What does that mean for me? >Will the IRS tell me that I don't qualify because I moved in order to >go to school? Being a student, per se, is not a job. However, even a part-time job--such as being a teaching or research assistance--does qualify you to deduct the move (provided, of course, the other requirements are met). >However, I can file a form which states that the work I do is >a requirement for my degree and thus duck taxes on the income. >But if I do this, am I screwing my claim for a moving expense deduction? Most definitely! I was audited and lost on this very point (yes, the IRS does audit graduate students). To claim the moving deduction, it must be applied against *taxable* income. On the other hand, if your income isn't taxable, why do you care whether or not your move is deductible? Your tax liability should be negligible. By the way, excluding you RA/TA income may make you ineligible for income average when you return to non-student status. Altho the benefits of income averaging have declined, it still may be to your long-term advantage to declare the income and pay taxes on it now, when you're in a lower tax bracket. Consult a tax advisor for details. -- Mark Scott Johnson CSnet: Johnson%hplabs@csnet-relay.csnet ARPAnet: Johnson%hplabs@csnet-relay.arpa USENET: {allegra,decvax,Shasta,ucbvax}!hplabs!johnson
ron@brl-tgr.ARPA (Ron Natalie <ron>) (02/22/85)
> > Most definitely! I was audited and lost on this very point > (yes, the IRS does audit graduate students). To claim the moving > deduction, it must be applied against *taxable* income. On the > other hand, if your income isn't taxable, why do you care whether > or not your move is deductible? Your tax liability should be > negligible. Could he deduct it against the income of the job he is coming from? If I have to move to take a job, put in a year or two, then quit and move back to whence I came, should I be able to deduct that? -Ron
johnson@hplabsc.UUCP (Mark Scott Johnson) (02/26/85)
>> To claim the moving >> deduction, it must be applied against *taxable* income. >Could he deduct it against the income of the job he is coming from? No, the moving deduction can only be claimed against the income from the job to which you are moving *and* that income must be taxable. >If I have to move to take a job, [b]ut in a year or two, then quit and >move back to whence I came, should I be able to deduct that? Yes, provided the income from the new job is taxable and the other requirements (e.g., length of stay and distance between old and new jobs) are meet. The taxable status of the job from which you are moving is irrelevant. I do believe, however, that you must actually have moved from some job. Going from nonworking student to new employee is probably not a deductible move. -- Mark Scott Johnson CSnet: Johnson%hplabs@csnet-relay.csnet ARPAnet: Johnson%hplabs@csnet-relay.arpa USENET: {allegra,decvax,Shasta,ucbvax}!hplabs!johnson