Nancy\'s old residence was 13 miles from the old job location, and the new job l

Question

Nancy's old residence was 13 miles from the old job location, and the new job location is 61 miles from her old residence. After the move, Nancy worked full-time for the next two years. What are the federal income tax consequences for Nancy and Sara regarding the reimbursement of Nancy's moving expenses? Nancy's old residence was 13 miles from the old job location, and the new job location is 61 miles from her old residence. After the move, Nancy worked full-time for the next two years. What are the federal income tax consequences for Nancy and Sara regarding the reimbursement of Nancy's moving expenses?

Explanation / Answer

Nancy satisfies the employment test but she does not satisfy the mileage test.

the distance between her old residence and new job location is 61 miles. distance between old residence and old job location is 13 miles. the difference between these two distances is 48 miles which is less than 50 miles standard for moving expenses to be deductible .

Therefore , nancy must treat the reimbursement as taxable wages.

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