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stmaryssewanee
Level 2

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!

Solved
Best answer February 18, 2019

Best Answers
Charies_M
Moderator

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.

 

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

View solution in original post

12 Comments 12
Kristine Mae
Moderator

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. 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! 

qbteachmt
Level 15

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.

stmaryssewanee
Level 2

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 -

Charies_M
Moderator

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.

 

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

stmaryssewanee
Level 2

Moving Expenses in Box 14 of W-2

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

Charies_M
Moderator

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.

qbteachmt
Level 15

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."

35351
Level 2

Moving Expenses in Box 14 of W-2

We have a pastor that moved to our church, and we paid the moving company. Would I create a payroll item fringe benefit that increases his wages? If i read the article "create a payroll item for Moving Expenses" it's very confusing. It states differences between Qualified and non qualified expenses, but then says Qualified Moving expense is no longer a payroll item. Am i following Non qualified moving expense payroll item. The article continues to show this is how you create Qualified but this is no longer allowed. Help!

RCV
QuickBooks Team
QuickBooks Team

Moving Expenses in Box 14 of W-2

Let me guide you on how to create a payroll item for moving expenses, 35351.

 

You can create the payroll item to increase the wages if it is considered as a nonqualified moving expense. Just choose the Other Moving Expense (for non-qualified moving expenses) as the Tax Tracking type. This payroll item will increase the taxable wages on the paycheck. Here's how:

  1. From the Lists menu, click Payroll Item List.
  2. Tap the Payroll Item button then New.
  3. Choose Custom Setup, then Next.
  4. Hit Addition, then Next.
  5. Enter a name for the addition payroll item such as Qualified Moving Expense, then Next.
  6. Choose an Expense Account then select Next.
  7. From the drop-down, click Other Moving Expense as the Tax Tracking type then select Next.
  8. In the Taxes window, the taxes should automatically be set up based on the Tax Tracking type chosen on the previous screen. These should not be changed. Then, click Next.
  9. On the Calculate Based on Quantity window, choose Neither then select Next.
  10. Fill in the information as needed if the Default rate and limit screens appear, and tap Next.
  11. Once done, press Finish.

Then, create a Non-Qualified payroll item if the employee has already received the money. Let me show you how: 

  1. From the Lists menu, tick Payroll Item List.
  2. Choose the Payroll Item button then New.
  3. Click Custom Setup, then Next.
  4. Select Addition, then Next.
  5. Enter a name for the addition payroll item such as Non-Qualified Moving Expense then Next.
  6. Choose a Liability and Expense Account, then Next.
  7. From the drop-down, choose Other Moving Expense (for non-qualified moving expenses) as the Tax Tracking type then select Next.
  8. In the Taxes window, the taxes should automatically be set up based on the Tax Tracking type chosen on the previous screen. These should not be changed. Then, hit Next.
  9. On the Calculate Based on Quantity window, choose Neither then select Next.
  10. If the Default rate and limit screens appear, fill in the information as needed and tap Next.
  11. Press Finish.

To learn more about this one, see the Create a payroll item for Moving Expenses article. Feel free to visit our Payroll page for more insights about managing your payroll transactions in QuickBooks.

 

I'd like to know how you get on after trying the steps, as I want to ensure this is resolved for you. Feel free to reply to this post and I'll get back to you, Take care always.

elpaso2020
Level 1

Moving Expenses in Box 14 of W-2

Hello -- I actually have the same question for an employee who was reimbursed for his moving expenses, non-qualified.  I entered this per QB instructions that I found in QB support (the link you provided says "we're sorry, we can't find the page you requested" so I can't compare what you recommended to the set up that I found) -- The moving expense is showing up in both Box 1 and Box 14 -- I am being told by my supervisors that this will possibly cause confusion to any CPA who helps this person filing his taxes. 

My question is just like stmaryssewanee -- is it supposed to be in both Box 1 and Box 14 ?

Thank you in advance for your help.

SirielJeaB
QuickBooks Team

Moving Expenses in Box 14 of W-2

Welcome to the community @elpaso2020. Let me help you with this.

 

I understand how relevant it is for you to put the moving expenses on the correct box of your W-2 form. 

 

QuickBooks will determine where the moving expense will show on the item setup. Because moving expenses must be subject to income and employment taxes, you can change the default Tax Tracking Type of the payroll item. It ensures that it gets reported accurately on your employee's W-2. Let me walk you through the process:

 

  1. Go to Lists, then select Payroll Item List.
  2. Double-click the reimbursement item. Click Next.
  3. From the drop-down lists, select an expense
  4. Click Next
  5. From Tax Tracking Type drop-down list, click Fringe Benefits.
  6. Click Next thrice, then click Finish.

 

You can also refer to these articles for references on managing your W-2s in QuickBooks Desktop: 

 

 

Please get back to us if you need additional assistance managing your W-2 forms. We're available 24/7. Have a nice day!

leeseinmt
Level 4

Moving Expenses in Box 14 of W-2

Funny. And infuriating.  I just got off the phone with QBD Payroll support and they advised me I should NOT use the "Other Moving Exp" tax type, but I should use the "Qual moving exp" tax type.  Which makes no sense, since other than military relocation, its taxable.  I'm just trying to figure out which one of the freaking QBD Payroll "tax type" codes will accomplish my objective.  I know what I want the impact to be, but I get inconsistent responses from QBD Payroll support. 

 

Ridiculous.

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