Kaylee obtained a new job in another state. She incurred the following moving expenses: $\begin{array}{ll}
\text {Transportation of furniture and household goods}&\$1,000\
\text { Air fare for Kaylee}&300\
\text {Air fare for Kavlee's husband and children }&900\
\text { House-hunting trip }&1,100
\end{array}$
Kaylee's employer reimburses her $3,300 for the above expenses. Assuming that Kaylee meets the time and distance tests, how much income does Kaylee have as a result of this reimbursement of her moving expenses?

Question

Kaylee obtained a new job in another state. She incurred the following moving expenses: $\begin{array}{ll}
\text {Transportation of furniture and household goods}&\$1,000\
\text { Air fare for Kaylee}&300\
\text {Air fare for Kavlee's husband and children }&900\
\text { House-hunting trip }&1,100
\end{array}$
 Kaylee's employer reimburses her $3,300 for the above expenses. Assuming that Kaylee meets the time and distance tests, how much income does Kaylee have as a result of this reimbursement of her moving expenses?

Quizplus · Accepted Answer

The house-hunting trip expense of $1,100 is not deductible under the moving expense rules, so the reimbursement for this amount is considered taxable income.

Kaylee Obtained a New Job in Another State Kaylee's Employer Reimburses Her $3,300 for the Above Expenses