Edward incurs the following moving expenses: The employer reimburses Edward for the full $10,000. What is the amount to be reported as income by Edward?

Question

Edward incurs the following moving expenses:  The employer reimburses Edward for the full $10,000. What is the amount to be reported as income by Edward?

Quizplus · Accepted Answer

Only the $4,000 direct moving expenses are allowed against the $10,000 reimbursement. Therefore, Edward must report income in the amount of the excess reimbursement of $6,000 ($10,000 - $4,000).

Edward Incurs the Following Moving Expenses: the Employer Reimburses