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Moving Expenses in Box 14 of W-2

The moving expense reimbursement for tax year 2018 is showing up in box 1 and box 14 of my employee's W-2.  Is this correct?  If so, can you give me some documented support for that?  I've looked all over the internet and can't find an answer.  Thanks!

Best answer 02-18-2019 09:30 AM

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QuickBooks Team

Re: Moving Expenses in Box 14 of W-2

Hello there, stmaryssewanee

 

Thanks for getting back. Let me share additional insights about moving expenses.

 

Since it's a non-qualified moving expense, funds are included in boxes 1, 3, & 5 of the W-2 as income. The increase wages in box 1,2,5 will be reported in box 14.

 

The article shared by my colleague provides a detailed explanation about non-qualified moving expenses: Create a payroll item for Moving Expenses.

 

Keep in touch if you have any other questions. I'm always happy to help.

7 Comments
QuickBooks Team

Re: Moving Expenses in Box 14 of W-2

Hello, Stmaryssewanee.

 

This depends on how you set up the moving expenses item. There are Qualified and Non-qualified moving expenses. And these items are set up differently. The Qualified moving expenses can be included in box 12 with a P-code. While, Non-qualified, the funds are included in boxes 1, 3, & 5 of the W-2 as income. You can check this article on how to set up the item correctly: Create a payroll item for Moving Expenses. This way, it will show in the correct box when you pull up the W-2 form.

 

Don't hesitate to reach out to us if you need more help. Have a good day! 

Established Community Backer ***

Re: Moving Expenses in Box 14 of W-2

@Kristine Mae

 

Please Learn from this input. You need to warn them if they have it Wrong, Intuit warns them to Change it. There is no "qualified or not" any longer.

 

@stmaryssewanee

 

You didn't mention if this is Reimbursed to the employee in 2018 for costs incurred in 2017 or not. That is the Only consideration for "qualified as not taxable." Now, it is All Taxable.

 

Here:

https://taxnews.ey.com/news/2018-1880-irs-announces-that-certain-moving-expenses-incurred-in-2017-ar...

 

"Moving Expenses

Prior to the Act, an individual could claim an above-the-line deduction (a non-itemized deduction) for moving expenses paid in connection with commencement of work at a new principal place of work.  Alternatively, an employer could pay or reimburse an employee for moving expenses as a tax-free fringe benefit.

 

Beginning in 2018, an employee can no longer deduct moving expenses nor can an employer pay or reimburse an employee’s moving expenses on a tax-free basis. On the other hand, if an employer treats payment or reimbursement of an employee’s moving expenses as W-2 wages, the employer can deduct the payment as a compensation expense."

 

 

Only the Military still gets the moving expense on their personal tax form.

Community Contributor *

Re: Moving Expenses in Box 14 of W-2

Yes - the reimbursement was for 2018 moving expenses.  They are not for military purposes, so they are non-qualified.  I was hoping just to know if these moving expenses are supposed to show up in box 14 or not.  Quickbooks has them in box 14, but I can't find anything online that says they are supposed to be there.  Do they act as a fringe benefit?  That would mean that they would be in box 14.  Thanks -

QuickBooks Team

Re: Moving Expenses in Box 14 of W-2

Hello there, stmaryssewanee

 

Thanks for getting back. Let me share additional insights about moving expenses.

 

Since it's a non-qualified moving expense, funds are included in boxes 1, 3, & 5 of the W-2 as income. The increase wages in box 1,2,5 will be reported in box 14.

 

The article shared by my colleague provides a detailed explanation about non-qualified moving expenses: Create a payroll item for Moving Expenses.

 

Keep in touch if you have any other questions. I'm always happy to help.

Community Contributor *

Re: Moving Expenses in Box 14 of W-2

Thanks so much!  That is the answer I was looking for!

QuickBooks Team

Re: Moving Expenses in Box 14 of W-2

Hi there, stmaryssewanee.

 

I'm happy I was able to help. Know that you're always welcome to visit us again if you have additional questions about moving expenses or other questions about QuickBooks. It's always our pleasure to help.

Established Community Backer ***

Re: Moving Expenses in Box 14 of W-2

Box 14 is "informational" and is useful for showing things that are not Wages, but are taxable Compensation. You can see this by reading the W2 instructions from the IRS or searching the web on "W2 box 14."