Due to a merger,Allison transfers from Miami to Chicago.Under a new job description,she is reclassified from employee to independent contractor status.Her moving expenses,which are not reimbursed,are as follows: Allison's deductible moving expense is:
A) $0.
B) $5,900.
C) $6,100.
D) $8,900.
E) $9,300.

Question

Due to a merger,Allison transfers from Miami to Chicago.Under a new job description,she is reclassified from employee to independent contractor status.Her moving expenses,which are not reimbursed,are as follows:  Allison's deductible moving expense is:
A) $0. 
B) $5,900. 
C) $6,100. 
D) $8,900. 
E) $9,300.

Quizplus · Accepted Answer

According to IRS guidelines, a taxpayer can deduct moving expenses if their new workplace is at least 50 miles farther from their old home than their old workplace was. Since Allison is moving from Miami to Chicago, the distance between the two cities is greater than 50 miles, which means her moving expenses qualify as deductible. The cost of her moving expenses is $5,900, which is the amount she can deduct on her taxes.

Due to a Merger,Allison Transfers from Miami to Chicago