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Ammended Return

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Ammended Return

Ammended return Publication 521 - Main Content Table of Contents Who Can Deduct Moving ExpensesMove Related to Start of Work Distance Test Time Test Retirees or Survivors Who Move to the United States Deductible Moving ExpensesMoves to Locations in the United States Moves to Locations Outside the United States Nondeductible Expenses ReimbursementsTypes of Reimbursement Plans Tax Withholding and Estimated Tax How and When To ReportForm 3903 When To Deduct Expenses Illustrated Example Members of the Armed Forces How To Get Tax Help Who Can Deduct Moving Expenses You can deduct your moving expenses if you meet all three of the following requirements. Ammended return Your move is closely related to the start of work. Ammended return You meet the distance test. Ammended return You meet the time test. Ammended return After you have read these rules, you may want to use Figure B to help you decide if you can deduct your moving expenses. Ammended return Retirees, survivors, and Armed Forces members. Ammended return   Different rules may apply if you are a member of the Armed Forces or a retiree or survivor moving to the United States. Ammended return These rules are discussed later in this publication. Ammended return Move Related to Start of Work Your move must be closely related, both in time and in place, to the start of work at your new job location. Ammended return Closely related in time. Ammended return   In most cases, you can consider moving expenses incurred within 1 year from the date you first reported to work at the new location as closely related in time to the start of work. Ammended return It is not necessary that you arrange to work before moving to a new location, as long as you actually go to work in that location. Ammended return    Figure A. Ammended return Illustration of Distance Test Please click here for the text description of the image. Ammended return Figure A   If you do not move within 1 year of the date you begin work, you ordinarily cannot deduct the expenses unless you can show that circumstances existed that prevented the move within that time. Ammended return Example. Ammended return Your family moved more than a year after you started work at a new location. Ammended return You delayed the move for 18 months to allow your child to complete high school. Ammended return You can deduct your moving expenses. Ammended return Closely related in place. Ammended return   You can generally consider your move closely related in place to the start of work if the distance from your new home to the new job location is not more than the distance from your former home to the new job location. Ammended return If your move does not meet this requirement, you may still be able to deduct moving expenses if you can show that: You are required to live at your new home as a condition of your employment, or You will spend less time or money commuting from your new home to your new job location. Ammended return Home defined. Ammended return   Your home means your main home (residence). Ammended return It can be a house, apartment, condominium, houseboat, house trailer, or similar dwelling. Ammended return It does not include other homes owned or kept up by you or members of your family. Ammended return It also does not include a seasonal home, such as a summer beach cottage. Ammended return Your former home means your home before you left for your new job location. Ammended return Your new home means your home within the area of your new job location. Ammended return Retirees or survivors. Ammended return   You may be able to deduct the expenses of moving to the United States or its possessions even though the move is not related to the start of work at a new job location. Ammended return You must have worked outside the United States or be a survivor of someone who did. Ammended return See Retirees or Survivors Who Move to the United States, later. Ammended return Distance Test Your move will meet the distance test if your new main job location is at least 50 miles farther from your former home than your old main job location was from your former home. Ammended return For example, if your old main job location was 3 miles from your former home, your new main job location must be at least 53 miles from that former home. Ammended return You can use Worksheet 1 to see if you meet this test. Ammended return Worksheet 1. Ammended return Distance Test   Note. Ammended return Members of the Armed Forces may not have to meet this test. Ammended return See Members of the Armed Forces. Ammended return     1. Ammended return Enter the number of miles from your old home to your new workplace 1. Ammended return miles 2. Ammended return Enter the number of miles from your old home to your old workplace 2. Ammended return miles 3. Ammended return Subtract line 2 from line 1. Ammended return If zero or less, enter -0- 3. Ammended return miles 4. Ammended return Is line 3 at least 50 miles? □ Yes. Ammended return You meet this test. Ammended return  □ No. Ammended return You do not meet this test. Ammended return You cannot deduct your moving expenses. Ammended return The distance between a job location and your home is the shortest of the more commonly traveled routes between them. Ammended return The distance test considers only the location of your former home. Ammended return It does not take into account the location of your new home. Ammended return See Figure A, earlier. Ammended return Example. Ammended return You moved to a new home less than 50 miles from your former home because you changed main job locations. Ammended return Your old main job location was 3 miles from your former home. Ammended return Your new main job location is 60 miles from that home. Ammended return Because your new main job location is 57 miles farther from your former home than the distance from your former home to your old main job location, you meet the distance test. Ammended return First job or return to full-time work. Ammended return   If you go to work full time for the first time, your place of work must be at least 50 miles from your former home to meet the distance test. Ammended return   If you go back to full-time work after a substantial period of part-time work or unemployment, your place of work also must be at least 50 miles from your former home. Ammended return Armed Forces. Ammended return   If you are in the Armed Forces and you moved because of a permanent change of station, you do not have to meet the distance test. Ammended return See Members of the Armed Forces, later. Ammended return Main job location. Ammended return   Your main job location is usually the place where you spend most of your working time. Ammended return This could be your office, plant, store, shop, or other location. Ammended return If there is no one place where you spend most of your working time, your main job location is the place where your work is centered, such as where you report for work or are otherwise required to “base” your work. Ammended return Union members. Ammended return   If you work for several employers on a short-term basis and you get work under a union hall system (such as a construction or building trades worker), your main job location is the union hall. Ammended return More than one job. Ammended return   If you have more than one job at any time, your main job location depends on the facts in each case. Ammended return The more important factors to be considered are: The total time you spend at each place, The amount of work you do at each place, and How much money you earn at each place. Ammended return    Table 1. Ammended return Satisfying the Time Test for Employees and Self-Employed Persons IF you are. Ammended return . Ammended return . Ammended return THEN you satisfy the time test by meeting the. Ammended return . Ammended return . Ammended return an employee 39-week test for employees. Ammended return self-employed 78-week test for self-employed persons. Ammended return both self-employed and an employee at the same time 78-week test for a self-employed person or the 39-week  test for an employee. Ammended return Your principal place of work  determines which test applies. Ammended return both self-employed and an employee, but unable to satisfy the 39-week test for employees 78-week test for self-employed persons. Ammended return Time Test To deduct your moving expenses, you also must meet one of the following two time tests. Ammended return The time test for employees. Ammended return The time test for self-employed persons. Ammended return Both of these tests are explained below. Ammended return See Table 1, below, for a summary of these tests. Ammended return You can deduct your moving expenses before you meet either of the time tests. Ammended return See Time Test Not Yet Met, later. Ammended return Time Test for Employees If you are an employee, you must work full time for at least 39 weeks during the first 12 months after you arrive in the general area of your new job location (39-week test). Ammended return Full-time employment depends on what is usual for your type of work in your area. Ammended return For purposes of this test, the following four rules apply. Ammended return You count only your full-time work as an employee, not any work you do as a self-employed person. Ammended return You do not have to work for the same employer for all 39 weeks. Ammended return You do not have to work 39 weeks in a row. Ammended return You must work full time within the same general commuting area for all 39 weeks. Ammended return Temporary absence from work. Ammended return   You are considered to have worked full time during any week you are temporarily absent from work because of illness, strikes, lockouts, layoffs, natural disasters, or similar causes. Ammended return You are also considered to have worked full time during any week you are absent from work for leave or vacation provided for in your work contract or agreement. Ammended return Seasonal work. Ammended return   If your work is seasonal, you are considered to be working full time during the off-season only if your work contract or agreement covers an off-season period of less than 6 months. Ammended return For example, a school teacher on a 12-month contract who teaches on a full-time basis for more than 6 months is considered to have worked full time for the entire 12 months. Ammended return    Figure B. Ammended return Can You Deduct Expenses for a Non-Military Move Within the United States? Please click here for the text description of the image. Ammended return Figure B Time Test for Self-Employed Persons If you are self-employed, you must work full time for at least 39 weeks during the first 12 months and for a total of at least 78 weeks during the first 24 months after you arrive in the general area of your new job location (78-week test). Ammended return For purposes of the time test for self-employed persons, the following three rules apply. Ammended return You count any full-time work you do either as an employee or as a self-employed person. Ammended return You do not have to work for the same employer or be self-employed in the same trade or business for the 78 weeks. Ammended return You must work within the same general commuting area for all 78 weeks. Ammended return Example. Ammended return You are a self-employed accountant who moves from Atlanta to New York City, and begin to work there on December 1, 2013. Ammended return You pay moving expenses in 2013 and 2014 in connection with this move. Ammended return On April 15, 2014, when you file your income tax return for the year 2013, you have been performing services as a self-employed individual on a full-time basis in New York City for approximately 20 weeks. Ammended return Although you have not satisfied the 78-week employment condition at this time, you can deduct your 2013 moving expenses on your 2013 income tax return as there is still sufficient time remaining before December 1, 2015, to satisfy such condition. Ammended return You can deduct any moving expenses you pay in 2014 on your 2014 income tax return even if you have not met the 78-week test. Ammended return You have until December 1, 2015, to satisfy this requirement. Ammended return Self-employment. Ammended return   You are self-employed if you work as the sole owner of an unincorporated business or as a partner in a partnership carrying on a business. Ammended return You are not considered self-employed if you are semi-retired, are a part-time student, or work only a few hours each week. Ammended return Full-time work. Ammended return   You can count only those weeks during which you work full time as a week of work. Ammended return Whether you work full time during any week depends on what is usual for your type of work in your area. Ammended return For example, you are a self-employed dentist and maintain office hours 4 days a week. Ammended return You are considered to perform services full time if maintaining office hours 4 days a week is not unusual for other self-employed dentists in your area. Ammended return Temporary absence from work. Ammended return   You are considered to be self-employed on a full-time basis during any week you are temporarily absent from work because of illness, strikes, natural disasters, or similar causes. Ammended return Seasonal trade or business. Ammended return   If your trade or business is seasonal, the off-season weeks when no work is required or available may be counted as weeks during which you worked full time. Ammended return The off-season must be less than 6 months and you must work full time before and after the off-season. Ammended return Example. Ammended return You own and operate a motel at a beach resort. Ammended return The motel is closed for 5 months during the off-season. Ammended return You work full time as the operator of the motel before and after the off-season. Ammended return You are considered self-employed on a full-time basis during the weeks of the off-season. Ammended return   If you were both an employee and self-employed, see Table 1 earlier, for the requirements. Ammended return Example. Ammended return Justin quit his job and moved from the east coast to the west coast to begin a full-time job as a cabinet-maker for C and L Cabinet Shop. Ammended return He generally worked at the shop about 40 hours each week. Ammended return Shortly after the move, Justin also began operating a cabinet-installation business from his home for several hours each afternoon and all day on weekends. Ammended return Because Justin's principal place of business is the cabinet shop, he can satisfy the time test by meeting the 39-week test. Ammended return    If Justin is unable to satisfy the requirements of the 39-week test during the 12-month period immediately following his arrival in the general location of his new principal place of work, he can satisfy the 78-week test. Ammended return Joint Return If you are married, file a joint return, and both you and your spouse work full-time, either of you can satisfy the full-time work test. Ammended return However, you cannot add the weeks your spouse worked to the weeks you worked to satisfy that test. Ammended return Time Test Not Yet Met You can deduct your moving expenses on your 2013 tax return even though you have not met the time test by the date your 2013 return is due. Ammended return You can do this if you expect to meet the 39-week test in 2014 or the 78-week test in 2014 or 2015. Ammended return If you do not deduct your moving expenses on your 2013 return, and you later meet the time test, you can file an amended return for 2013 to take the deduction. Ammended return See When To Deduct Expenses later, for more details. Ammended return Failure to meet the time test. Ammended return    If you deduct moving expenses but do not meet the time test in 2014 or 2015, you must either: Report your moving expense deduction as other income on your Form 1040 for the year you cannot meet the test, or Use Form 1040X to amend your 2013 return, figuring your tax without the moving expense deduction. Ammended return Example. Ammended return You arrive in the general area of your new job location, as an employee, on September 15, 2013. Ammended return You deduct your moving expenses on your 2013 return, the year of the move, even though you have not yet met the time test by the date your return is due. Ammended return If you do not meet the 39-week test during the 12-month period following your arrival in the general area of your new job location, you must either: Report your moving expense deduction as other income on your Form 1040 for 2014, or Use Form 1040X to amend your 2013 return, figuring your tax without the moving expense deduction. Ammended return Exceptions to the Time Test You do not have to meet the time test if one of the following applies. Ammended return You are in the Armed Forces and you moved because of a permanent change of station. Ammended return See Members of the Armed Forces , later. Ammended return Your main job location was outside the United States and you moved to the United States because you retired. Ammended return See Retirees or Survivors Who Move to the United States, later. Ammended return You are the survivor of a person whose main job location at the time of death was outside the United States. Ammended return See Retirees or Survivors Who Move to the United States, later. Ammended return Your job at the new location ends because of death or disability. Ammended return You are transferred for your employer's benefit or laid off for a reason other than willful misconduct. Ammended return For this exception, you must have obtained full-time employment and you must have expected to meet the test at the time you started the job. Ammended return Retirees or Survivors Who Move to the United States If you are a retiree who was working abroad or a survivor of a decedent who was working abroad and you move to the United States or one of its possessions, you do not have to meet the time test, discussed earlier. Ammended return However, you must meet the requirements discussed below under Retirees who were working abroad or Survivors of decedents who were working abroad. Ammended return If you are living in the United States, retire, and then move and remain retired, you cannot claim a moving expense deduction for that move. Ammended return United States defined. Ammended return   For this section of this publication, the term “United States” includes the possessions of the United States. Ammended return Retirees who were working abroad. Ammended return   You can deduct moving expenses for a move to a new home in the United States when you permanently retire. Ammended return However, both your former main job location and your former home must have been outside the United States. Ammended return Permanently retired. Ammended return   You are considered permanently retired when you cease gainful full-time employment or self-employment. Ammended return If, at the time you retire, you intend your retirement to be permanent, you will be considered retired even though you later return to work. Ammended return Your intention to retire permanently may be determined by: Your age and health, The customary retirement age for people who do similar work, Whether you receive retirement payments from a pension or retirement fund, and The length of time before you return to full-time work. Ammended return Decedents. Ammended return   Qualified deductible moving expenses are allowed on a final return (Form 1040 or 1040NR) when a taxpayer has moved and dies within the same calendar year. Ammended return The personal representative filing on behalf of that taxpayer should complete and attach Form 3903 to the final return. Ammended return   A personal representative can be an executor, administrator, or anyone who is in charge of the deceased person's property. Ammended return For more information, see Publication 559, Survivors, Executors, and Administrators. Ammended return Survivors of decedents who were working abroad. Ammended return   If you are the spouse or the dependent of a person whose main job location at the time of death was outside the United States, you can deduct moving expenses if the following five requirements are met. Ammended return The move is to a home in the United States. Ammended return The move begins within 6 months after the decedent's death. Ammended return (When a move begins is described below. Ammended return ) The move is from the decedent's former home. Ammended return The decedent's former home was outside the United States. Ammended return The decedent's former home was also your home. Ammended return When a move begins. Ammended return   A move begins when one of the following events occurs. Ammended return You contract for your household goods and personal effects to be moved to your home in the United States, but only if the move is completed within a reasonable time. Ammended return Your household goods and personal effects are packed and on the way to your home in the United States. Ammended return You leave your former home to travel to your new home in the United States. Ammended return Deductible Moving Expenses If you meet the requirements discussed earlier under Who Can Deduct Moving Expenses, you can deduct the reasonable expenses of: Moving your household goods and personal effects (including in-transit or foreign-move storage expenses), and Traveling (including lodging but not meals) to your new home. Ammended return You cannot deduct any expenses for meals. Ammended return Reasonable expenses. Ammended return   You can deduct only those expenses that are reasonable for the circumstances of your move. Ammended return For example, the cost of traveling from your former home to your new one should be by the shortest, most direct route available by conventional transportation. Ammended return If during your trip to your new home, you stop over, or make side trips for sightseeing, the additional expenses for your stopover or side trips are not deductible as moving expenses. Ammended return Example. Ammended return Beth's employer transferred her from Boston, Massachusetts, to Buffalo, New York. Ammended return On her way to Buffalo, Beth drove into Canada to visit the Toronto Zoo. Ammended return Since Beth's excursion into Canada was away from the usual Boston-Buffalo route, the expenses paid or incurred for the excursion are not deductible. Ammended return Beth can only deduct what it would have cost to drive directly from Boston to Buffalo. Ammended return Likewise, Beth cannot deduct any expenses, such as the cost of a hotel room, caused by the delay for sightseeing. Ammended return Travel by car. Ammended return   If you use your car to take yourself, members of your household, or your personal effects to your new home, you can figure your expenses by deducting either: Your actual expenses, such as the amount you pay for gas and oil for your car, if you keep an accurate record of each expense, or The standard mileage rate of 24 cents per mile. Ammended return Whether you use actual expenses or the standard mileage rate to figure your expenses, you can deduct the parking fees and tolls you pay to move. Ammended return You cannot deduct any part of general repairs, general maintenance, insurance, or depreciation for your car. Ammended return Member of your household. Ammended return   You can deduct moving expenses you pay for yourself and members of your household. Ammended return A member of your household is anyone who has both your former and new home as his or her home. Ammended return It does not include a tenant or employee, unless that person is your dependent. Ammended return Moves to Locations in the United States If you meet the requirements under Who Can Deduct Moving Expenses, earlier, you can deduct expenses for a move to the area of a new main job location within the United States or its possessions. Ammended return Your move may be from one U. Ammended return S. Ammended return location to another or from a foreign country to the United States. Ammended return Household goods and personal effects. Ammended return   You can deduct the cost of packing, crating, and transporting your household goods and personal effects and those of the members of your household from your former home to your new home. Ammended return For purposes of moving expenses, the term “personal effects” includes, but is not limited to, movable personal property that the taxpayer owns and frequently uses. Ammended return   If you use your own car to move your things, see Travel by car, earlier. Ammended return   You can deduct any costs of connecting or disconnecting utilities required because you are moving your household goods, appliances, or personal effects. Ammended return   You can deduct the cost of shipping your car and your household pets to your new home. Ammended return   You can deduct the cost of moving your household goods and personal effects from a place other than your former home. Ammended return Your deduction is limited to the amount it would have cost to move them from your former home. Ammended return Example. Ammended return Paul Brown has been living and working in North Carolina for the last 4 years. Ammended return Because he has been renting a small apartment, he stored some furniture at his parents' home in Georgia. Ammended return Paul got a job in Washington, DC. Ammended return It cost him $900 to move the furniture from his North Carolina apartment to Washington and $3,000 to move the stored furniture from Georgia to Washington. Ammended return It would have cost $1,800 to ship the stored furniture from North Carolina to Washington. Ammended return He can deduct only $1,800 of the $3,000 he paid. Ammended return The amount he can deduct for moving his furniture is $2,700 ($900 + $1,800). Ammended return You cannot deduct the cost of moving furniture you buy on the way to your new home. Ammended return   Storage expenses. Ammended return   You can include the cost of storing and insuring household goods and personal effects within any period of 30 consecutive days after the day your things are moved from your former home and before they are delivered to your new home. Ammended return Travel expenses. Ammended return   You can deduct the cost of transportation and lodging for yourself and members of your household while traveling from your former home to your new home. Ammended return This includes expenses for the day you arrive. Ammended return    The day of arrival is the day you secure lodging at the new place of residence, even if the lodging is on a temporary basis. Ammended return   You can include any lodging expenses you had in the area of your former home within one day after you could no longer live in your former home because your furniture had been moved. Ammended return   The members of your household do not have to travel together or at the same time. Ammended return However, you can only deduct expenses for one trip per person. Ammended return If you use your own car, see Travel by car, earlier. Ammended return Example. Ammended return   In February 2013, Josh and Robyn Black moved from Minneapolis to Washington, DC, where Josh was starting a new job. Ammended return Josh drove the family car to Washington, DC, a trip of 1,100 miles. Ammended return His expenses were $264. Ammended return 00 for mileage (1,100 miles x 24 cents per mile) plus $40 for tolls and $150 for lodging, for a total of $454. Ammended return 00. Ammended return One week later, Robyn flew from Minneapolis to Washington, DC. Ammended return Her only expense was her $400 plane ticket. Ammended return The Blacks' deduction is $854. Ammended return 00 (Josh's $454. Ammended return 00 + Robyn's $400). Ammended return Moves to Locations Outside the United States To deduct expenses for a move outside the United States, you must move to the area of a new place of work outside the United States and its possessions. Ammended return You must meet the requirements under Who Can Deduct Moving Expenses , earlier. Ammended return Deductible expenses. Ammended return   If your move is to a location outside the United States and its possessions, you can deduct the following expenses. Ammended return The cost of moving household goods and personal effects from your former home to your new home. Ammended return The cost of traveling (including lodging) from your former home to your new home. Ammended return The cost of moving household goods and personal effects to and from storage. Ammended return The cost of storing household goods and personal effects while you are at the new job location. Ammended return The first two items were explained earlier under Moves to Locations in the United States . Ammended return The last two items are discussed, later. Ammended return Moving goods and effects to and from storage. Ammended return   You can deduct the reasonable expenses of moving your personal effects to and from storage. Ammended return Storage expenses. Ammended return   You can deduct the reasonable expenses of storing your household goods and personal effects for all or part of the time the new job location remains your main job location. Ammended return Moving expenses allocable to excluded foreign income. Ammended return   If you live and work outside the United States, you may be able to exclude from income part or all of the income you earn in the foreign country. Ammended return You may also be able to claim a foreign housing exclusion or deduction. Ammended return If you claim the foreign earned income or foreign housing exclusion, you cannot deduct the part of your moving expenses that relates to the excluded income. Ammended return    Publication 54, Tax Guide for U. Ammended return S. Ammended return Citizens and Resident Aliens Abroad, explains how to figure the part of your moving expenses that relates to excluded income. Ammended return You can get the publication from most U. Ammended return S. Ammended return embassies and consulates, or see How To Get Tax Help at the end of this publication. Ammended return Nondeductible Expenses You cannot deduct the following items as moving expenses. Ammended return Any part of the purchase price of your new home. Ammended return Car tags. Ammended return Driver's license. Ammended return Expenses of buying or selling a home (including closing costs, mortgage fees, and points). Ammended return Expenses of entering into or breaking a lease. Ammended return Home improvements to help sell your home. Ammended return Loss on the sale of your home. Ammended return Losses from disposing of memberships in clubs. Ammended return Mortgage penalties. Ammended return Pre-move househunting expenses. Ammended return Real estate taxes. Ammended return Refitting of carpet and draperies. Ammended return Return trips to your former residence. Ammended return Security deposits (including any given up due to the move). Ammended return Storage charges except those incurred in transit and for foreign moves. Ammended return No double deduction. Ammended return   You cannot take a moving expense deduction and a business expense deduction for the same expenses. Ammended return You must decide if your expenses are deductible as moving expenses or as business expenses. Ammended return For example, expenses you have for travel, meals, and lodging while temporarily working at a place away from your regular place of work may be deductible as business expenses if you are considered away from home on business. Ammended return In most cases, your work at a single location is considered temporary if it is realistically expected to last (and does in fact last) for one year or less. Ammended return   See Publication 463, Travel, Entertainment, Gift, and Car Expenses, for information on deducting your business expenses. Ammended return Reimbursements This section explains how to report a reimbursement (including advances and allowances) on your tax return. Ammended return It covers reimbursements for any of your moving expenses discussed in this publication. Ammended return It also explains the types of reimbursements on which your employer must withhold income, social security, and Medicare taxes. Ammended return Types of Reimbursement Plans If you receive a reimbursement for your moving expenses, how you report this amount and your expenses depends on whether the reimbursement is paid to you under an accountable plan or a nonaccountable plan. Ammended return For a quick overview of how to report your reimbursement and moving expenses, see Table 2 in the section on How and When To Report, later. Ammended return Your employer should tell you what method of reimbursement is used and what records are required. Ammended return Accountable Plans To be an accountable plan, your employer's reimbursement arrangement must require you to meet all three of the following rules. Ammended return Your expenses must have a business connection – that is, you must have paid or incurred deductible expenses while performing services as an employee of your employer. Ammended return Two examples of this are the reasonable expenses of moving your possessions from your former home to your new home, and traveling from your former home to your new home. Ammended return You must adequately account to your employer for these expenses within a reasonable period of time. Ammended return You must return any excess reimbursement or allowance within a reasonable period of time. Ammended return Adequate accounting. Ammended return   You adequately account for your moving expenses by giving your employer documentation of those expenses, such as a statement of expense, an account book, a diary, or a similar record in which you entered each expense at or near the time you had it. Ammended return Documentation includes receipts, canceled checks, and bills. Ammended return Reasonable period of time. Ammended return   What constitutes a “reasonable period of time” depends on the facts and circumstances of your situation. Ammended return However, regardless of the facts and circumstances, actions that take place within the times specified in the following list will be treated as taking place within a reasonable period of time. Ammended return You receive an advance within 30 days of the time you have an expense. Ammended return You adequately account for your expenses within 60 days after they were paid or incurred. Ammended return You return any excess reimbursement within 120 days after the expense was paid or incurred. Ammended return You are given a periodic statement (at least quarterly) that asks you to either return or adequately account for outstanding advances and you comply within 120 days of the statement. Ammended return Excess reimbursement. Ammended return   This includes any amount you are paid (including advances and allowances) that is more than the moving expenses that you adequately accounted for to your employer within a reasonable period of time. Ammended return Returning excess reimbursements. Ammended return   You must be required to return any excess reimbursement for your moving expenses to the person paying the reimbursement. Ammended return Excess reimbursement includes any amount for which you did not adequately account within a reasonable period of time. Ammended return For example, if you received an advance and you did not spend all the money on deductible moving expenses, or you do not have proof of all your expenses, you have an excess reimbursement. Ammended return You meet accountable plan rules. Ammended return   If for all reimbursements you meet the three rules for an accountable plan (listed earlier), your employer should not include any reimbursements of expenses in your income in box 1 of your Form W-2, Wage and Tax Statement. Ammended return Instead, your employer should include the reimbursements in box 12 of your Form W-2. Ammended return Example. Ammended return You lived in Boston and accepted a job in Atlanta. Ammended return Under an accountable plan, your employer reimbursed you for your actual traveling expenses from Boston to Atlanta and the cost of moving your furniture to Atlanta. Ammended return Your employer will include the reimbursement on your Form W-2, box 12, with Code P. Ammended return If your moving expenses are more than your reimbursement, you may be able to deduct your additional expenses (see How and When To Report, later). Ammended return You do not meet accountable plan rules. Ammended return   You may be reimbursed by your employer, but you may not meet all three rules for part of your expenses. Ammended return   If your deductible expenses are reimbursed under an otherwise accountable plan but you do not return, within a reasonable period, any reimbursement of expenses for which you did not adequately account, then only the amount for which you did adequately account is considered as paid under an accountable plan. Ammended return The remaining expenses are treated as having been reimbursed under a nonaccountable plan (discussed below). Ammended return Reimbursement of nondeductible expenses. Ammended return   You may be reimbursed by your employer for moving expenses, some of which are deductible expenses and some of which are not deductible. Ammended return The reimbursements you receive for the nondeductible expenses and any allowances for miscellaneous or unspecified expenses are treated as paid under a nonaccountable plan (see below) and are included in your income. Ammended return If you are reimbursed by your employer for the taxes you must pay (including social security and Medicare taxes) because you have received taxable moving expense reimbursements, you must pay tax on this reimbursement as well, and it is treated as paid under a nonaccountable plan. Ammended return Nonaccountable Plans A nonaccountable plan is a reimbursement arrangement that does not meet the three rules listed earlier under Accountable Plans. Ammended return In addition, the following payments will be treated as paid under a nonaccountable plan. Ammended return Excess reimbursements you fail to return to your employer. Ammended return Reimbursements of nondeductible expenses. Ammended return See Reimbursement of nondeductible expenses, earlier. Ammended return If an arrangement pays for your moving expenses by reducing your wages, salary, or other pay, the amount of the reduction will be treated as a payment made under a nonaccountable plan. Ammended return This is because you are entitled to receive the full amount of your pay regardless of whether you had any moving expenses. Ammended return If you are not sure if the moving expense reimbursement arrangement is an accountable or nonaccountable plan, ask your employer. Ammended return Your employer will add the amount of any reimbursement paid to you under a nonaccountable plan to your wages, salary, or other pay. Ammended return Your employer will report the total in box 1 of your Form W-2. Ammended return Example. Ammended return To get you to work in another city, your new employer reimburses you under an accountable plan for the $7,500 loss on the sale of your home. Ammended return Because this is a reimbursement of a nondeductible expense, it is treated as paid under a nonaccountable plan and must be included as income in box 1 of your Form W-2. Ammended return Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 Do not include in income any moving expense payment you received under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. Ammended return These payments are made to persons displaced from their homes, businesses, or farms by federal projects. Ammended return Tax Withholding and Estimated Tax Your employer must withhold income, social security, and Medicare taxes from reimbursements and allowances paid to you that are included in your income. Ammended return See Reimbursements included in income, later. Ammended return Reimbursements excluded from income. Ammended return   Your employer should not include in your wages reimbursements paid under an accountable plan (explained earlier) for moving expenses that you: Could deduct if you had paid or incurred them, and Did not deduct in an earlier year. Ammended return These reimbursements are fringe benefits excludable from your income as qualified moving expense reimbursements. Ammended return Your employer should report these reimbursements on your Form W-2, box 12, with Code P. Ammended return    You cannot claim a moving expense deduction for expenses covered by reimbursements excluded from income (see Accountable Plans under Types of Reimbursement Plans, earlier). Ammended return Expenses deducted in earlier year. Ammended return   If you receive a reimbursement this year for moving expenses deducted in an earlier year, and the reimbursement is not included as wages in box 1 of your Form W-2, you must include the reimbursement in income on Form 1040, line 21. Ammended return Your employer should show the amount of your reimbursement in box 12 of your Form W-2. Ammended return Reimbursements included in income. Ammended return   Your employer must include in your income any reimbursements made (or treated as made) under a nonaccountable plan, even though they are for deductible moving expenses. Ammended return See Nonaccountable Plans under Types of Reimbursement Plans, earlier. Ammended return Your employer also must include in your gross income as wages any reimbursements of, or payments for, nondeductible moving expenses. Ammended return This includes amounts your employer reimbursed you under an accountable plan (explained earlier) for meals, househunting trips, and real estate expenses. Ammended return It also includes reimbursements that exceed your deductible expenses and that you do not return to your employer. Ammended return Reimbursement for deductible and nondeductible expenses. Ammended return    If your employer reimburses you for both deductible and nondeductible moving expenses, your employer must determine the amount of the reimbursement that is not taxable and not subject to withholding. Ammended return Your employer must treat any remaining amount as taxable wages and withhold income, social security, and Medicare taxes. Ammended return Amount of income tax withheld. Ammended return   If the reimbursements or allowances you receive are taxable, the amount of income tax your employer will withhold depends on several factors. Ammended return It depends in part on whether income tax is withheld from your regular wages, on whether the reimbursements and allowances are added to your regular wages, and on any information you have given to your employer on Form W-4, Employee's Withholding Allowance Certificate. Ammended return   Your employer can treat your reimbursements as supplemental wages and not include the reimbursements and allowances in your regular wages. Ammended return The employer can withhold income tax on supplemental wages at a flat rate which may be different from your regular tax rate. Ammended return Estimated tax. Ammended return    If you must make estimated tax payments, you need to take into account any taxable reimbursements and deductible moving expenses in figuring your estimated tax. Ammended return For details about estimated taxes, see Publication 505, Tax Withholding and Estimated Tax. Ammended return How and When To Report This section explains how and when to report your moving expenses and any reimbursements or allowances you received for your move. Ammended return For a quick overview, see Table 2, later. Ammended return Form 3903 Use Form 3903 to figure your moving expense deduction. Ammended return Use a separate Form 3903 for each move for which you are deducting expenses. Ammended return Do not file Form 3903 if all of the following apply. Ammended return You moved to a location outside the United States in an earlier year. Ammended return You are claiming only storage fees while you were away from the United States. Ammended return Any amount your employer paid for the storage fees is included as wages in box 1 of your Form W-2. Ammended return Instead, enter the storage fees (after the reduction for the part that is allocable to excluded income) on Form 1040, line 26, and enter “Storage” on the dotted line next to the amount. Ammended return If you meet the special rules for members of the Armed Forces, see How to complete Form 3903 for members of the Armed Forces under Members of the Armed Forces, later. Ammended return Completing Form 3903. Ammended return   Complete Worksheet 1, earlier, or the Distance Test Worksheet in the instructions for Form 3903 to see whether you meet the distance test. Ammended return If so, complete lines 1 through 3 of the form using your actual expenses (except, if you use your own car, you can figure expenses based on the standard mileage rate, instead of actual amounts for gas and oil). Ammended return Enter on line 4 the total amount of your moving expense reimbursement that was excluded from your wages. Ammended return This excluded amount should be identified on Form W-2, box 12, with code P. Ammended return Expenses greater than reimbursement. Ammended return   If line 3 is more than line 4, subtract line 4 from line 3 and enter the result on line 5 and on Form 1040, line 26. Ammended return This is your moving expense deduction. Ammended return Expenses equal to or less than reimbursement. Ammended return    If line 3 is equal to or less than line 4, you have no moving expense deduction. Ammended return Subtract line 3 from line 4 and, if the result is more than zero, include it as income on Form 1040, line 7. Ammended return Table 2. Ammended return Reporting Your Moving Expenses and Reimbursements IF your Form W-2 shows. Ammended return . Ammended return . Ammended return AND you have. Ammended return . Ammended return . Ammended return THEN. Ammended return . Ammended return . Ammended return your reimbursement reported only  in box 12 with code P moving expenses greater than the  amount in box 12 file Form 3903 showing all allowable  expenses* and reimbursements. Ammended return your reimbursement reported only  in box 12 with code P moving expenses equal to the amount  in box 12 do not file Form 3903. Ammended return your reimbursement divided  between box 12 and box 1 moving expenses greater than the  amount in box 12 file Form 3903 showing all allowable  expenses,* but only the  reimbursements reported in box 12 of  Form W-2. Ammended return your entire reimbursement reported  as wages in box 1 moving expenses file Form 3903 showing all allowable  expenses,* but do not show any  reimbursements. Ammended return no reimbursement moving expenses file Form 3903 showing all allowable  expenses. Ammended return * * See Deductible Moving Expenses, earlier, for allowable expenses. Ammended return    Where to deduct. Ammended return   Deduct your moving expenses on Form 1040, line 26. Ammended return The amount of moving expenses you can deduct is shown on Form 3903, line 5. Ammended return    You cannot deduct moving expenses on Form 1040EZ or Form 1040A. Ammended return   When To Deduct Expenses You may have a choice of when to deduct your moving expenses. Ammended return Expenses not reimbursed. Ammended return   If you were not reimbursed, deduct your moving expenses in the year you paid or incurred the expenses. Ammended return Example. Ammended return In December 2012, your employer transferred you to another city in the United States, where you still work. Ammended return You are single and were not reimbursed for your moving expenses. Ammended return In 2012, you paid for moving your furniture and deducted these expenses on your 2012 tax return. Ammended return In January 2013, you paid for travel to the new city. Ammended return You can deduct these additional expenses on your 2013 tax return. Ammended return Expenses reimbursed. Ammended return   If you are reimbursed for your expenses and you use the cash method of accounting, you can deduct your expenses either in the year you paid them or in the year you received the reimbursement. Ammended return If you use the cash method of accounting, you can choose to deduct the expenses in the year you are reimbursed even though you paid the expenses in a different year. Ammended return See Choosing when to deduct, next. Ammended return   If you deduct your expenses and you receive the reimbursement in a later year, you must include the reimbursement in your income on Form 1040, line 21. Ammended return Choosing when to deduct. Ammended return   If you use the cash method of accounting, which is used by most individuals, you can choose to deduct moving expenses in the year your employer reimburses you if: You paid the expenses in a year before the year of reimbursement, or You paid the expenses in the year immediately after the year of reimbursement but by the due date, including extensions, for filing your return for the reimbursement year. Ammended return How to make the choice. Ammended return   You choose to deduct moving expenses in the year you received reimbursement by taking the deduction on your return, or amended return, for that year. Ammended return    You cannot deduct any moving expenses for which you received a reimbursement that was not included in your income. Ammended return Illustrated Example Tom and Peggy Smith are married and have two children. Ammended return They owned a home in Detroit where Tom worked. Ammended return On February 8, 2013, Tom's employer told him that he would be transferred to San Diego as of April 10 that year. Ammended return Peggy flew to San Diego on March 1 to look for a new home. Ammended return She put a down payment of $25,000 on a house being built and returned to Detroit on March 4. Ammended return The Smiths sold their Detroit home for $1,500 less than they paid for it. Ammended return They contracted to have their personal effects moved to San Diego on April 3. Ammended return The family drove to San Diego where they found that their new home was not finished. Ammended return They stayed in a nearby motel until the house was ready on May 1. Ammended return On April 10, Tom went to work in the San Diego plant where he still works. Ammended return Their records for the move show: 1) Peggy's pre-move househunting  trip:       Travel and lodging   $ 449       Meals   75   $ 524 2) Down payment on San Diego  home 25,000 3) Real estate commission paid on  sale of Detroit home 3,500 4) Loss on sale of Detroit home (not  including real estate commission) 1,500 5) Amount paid for moving personal  effects (furniture, other household  goods, etc. Ammended return ) 8,000 6) Expenses of driving to San Diego:       Mileage (Start 14,278;  End 16,478) 2,200 miles at 24 cents a mile   $ 528       Lodging   180       Meals   320   1,028 7) Cost of temporary living  expenses in San Diego:       Motel rooms   $1,450       Meals   2,280   3,730 Total $43,282   Tom was reimbursed $10,907 under an accountable plan. Ammended return His employer gave him the following breakdown of the reimbursement that was allowed under the employer's plan. Ammended return Moving personal effects   $6,800 Travel (and lodging) to San Diego   708 Travel (and lodging) for househunting trip   449 Lodging for temporary quarters   1,450 Loss on sale of home   1,500 Total reimbursement   $10,907 The employer included this reimbursement on Tom's Form W-2 for the year. Ammended return The reimbursement of allowable expenses, $7,508 for moving household goods and travel to San Diego, was included in box 12 of Form W-2. Ammended return His employer identified this amount with code P. Ammended return The employer included the balance, $3,399 reimbursement of nonallowable expenses, in box 1 of Form W-2 with Tom's other wages. Ammended return Tom must include this amount on Form 1040, line 7. Ammended return The employer withholds taxes from the $3,399, as discussed under Reimbursement for deductible and nondeductible expenses under Tax Withholding and Estimated Tax, earlier. Ammended return Also, Tom's employer could have given him a separate Form W-2 for his moving expense reimbursement. Ammended return To figure his tax deduction for moving expenses, Tom enters the following amounts on Form 3903. Ammended return Item 5 — moving personal effects (line 1)   $8,000 Item 6 — driving to San Diego ($528 + $180)  (line 2)   708 Total tax deductible moving expenses (line 3)   $8,708 Minus: Reimbursement included in box 12  of Form W-2 (line 4)   7,508 Tax deduction for moving expenses (line 5)   $1,200   Tom's Form 3903 is shown, later. Ammended return He also enters his deduction, $1,200, on Form 1040, line 26. Ammended return Nondeductible expenses. Ammended return   Of the $43,282 expenses that Tom and Peggy incurred, the following items totaling $34,574 ($43,282 – $8,708) cannot be deducted. Ammended return Item 1 — pre-move househunting expenses of $524. Ammended return Item 2 — the $25,000 down payment on the San Diego home. Ammended return If any part of it were for payment of deductible taxes or interest on the mortgage on the house, that part would be deductible as an itemized deduction. Ammended return Item 3 — the $3,500 real estate commission paid on the sale of the Detroit home. Ammended return The commission is used to figure the gain or loss on the sale. Ammended return Item 4 — the $1,500 loss on the sale of the Detroit home. Ammended return Item 6 — the $320 expense for meals while driving to San Diego. Ammended return (However, the lodging and car expenses are deductible. Ammended return ) Item 7 — temporary living expenses of $3,730. Ammended return    This image is too large to be displayed in the current screen. Ammended return Please click the link to view the image. Ammended return 2012 Form 3903 Moving Expenses Members of the Armed Forces If you are a member of the Armed Forces on active duty and you move because of a permanent change of station, you do not have to meet the distance and time tests, discussed earlier. Ammended return You can deduct your unreimbursed moving expenses. Ammended return A permanent change of station includes: A move from your home to your first post of active duty, A move from one permanent post of duty to another, and A move from your last post of duty to your home or to a nearer point in the United States. Ammended return The move must occur within one year of ending your active duty or within the period allowed under the Joint Travel Regulations. Ammended return Spouse and dependents. Ammended return   If a member of the Armed Forces dies, is imprisoned, or deserts, a permanent change of station for the spouse or dependent includes a move to: The place of enlistment, The member's, spouse's, or dependent's home of record, or A nearer point in the United States. Ammended return   If the military moves you, your spouse, and dependents, to or from separate locations, the moves are treated as a single move to your new main job location. Ammended return Services or reimbursements provided by government. Ammended return   Do not include in income the value of moving and storage services provided by the government because of a permanent change of station. Ammended return In general, if the total reimbursements or allowances you receive from the government because of the move are more than your actual moving expenses, the government must include the excess in your wages on Form W-2. Ammended return However, the excess portion of a dislocation allowance, a temporary lodging allowance, a temporary lodging expense, or a move-in housing allowance is not included in income and should not be included in box 1 of Form W-2. Ammended return   If your reimbursements or allowances are less than your actual moving expenses, do not include the reimbursements or allowances in income. Ammended return You can deduct the expenses that are more than your reimbursements. Ammended return See Deductible Moving Expenses, earlier. Ammended return How to complete Form 3903 for members of the Armed Forces. Ammended return    Take the following steps. Ammended return Complete lines 1 through 3 of the form, using your actual expenses. Ammended return Do not include any expenses for moving services provided by the government. Ammended return Also, do not include any expenses that were reimbursed by an allowance you do not have to include in your income. Ammended return Enter on line 4 the total reimbursements and allowances you received from the government for the expenses claimed on lines 1 and 2. Ammended return Do not include the value of moving or storage services provided by the government. Ammended return Also, do not include any part of a dislocation allowance, a temporary lodging allowance, a temporary lodging expense, or a move-in housing allowance. Ammended return Complete line 5. Ammended return If line 3 is more than line 4, subtract line 4 from line 3 and enter the result on line 5 and on Form 1040, line 26. Ammended return This is your moving expense deduction. Ammended return If line 3 is equal to or less than line 4, you do not have a moving expense deduction. Ammended return Subtract line 3 from line 4 and, if the result is more than zero, enter it on Form 1040, line 7. Ammended return If the military moves you, your spouse and dependents, to or from different locations, treat these moves as a single move. Ammended return    Do not deduct any expenses for moving or storage services provided by the government. Ammended return How To Get Tax Help Go online, use a smart phone, call or walk in to an office near you. Ammended return Whether it's help with a tax issue, preparing your tax return or picking up a free publication or form, get the help you need the way you want it. Ammended return Free help with your tax return. Ammended return   Free help in preparing your return is available nationwide from IRS-certified volunteers. Ammended return The Volunteer Income Tax Assistance (VITA) program is designed to help low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers. Ammended return The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Ammended return Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Ammended return Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. Ammended return To find the nearest VITA or TCE site, visit IRS. Ammended return gov or call 1-800-906-9887. Ammended return   As part of the TCE program, AARP offers the Tax-Aide counseling program. Ammended return To find the nearest AARP Tax-Aide site, visit AARP's website at www. Ammended return aarp. Ammended return org/money/taxaide or call 1-888-227-7669. Ammended return   For more information on these programs, go to IRS. Ammended return gov and enter “VITA” in the search box. Ammended return Internet. Ammended return IRS. Ammended return gov and IRS2Go are ready when you are — every day, every night, 24 hours a day, 7 days a week. Ammended return Apply for an Employer Identification Number (EIN). Ammended return Go to IRS. Ammended return gov and enter Apply for an EIN in the search box. Ammended return Request an Electronic Filing PIN by going to IRS. Ammended return gov and entering Electronic Filing PIN in the search box. Ammended return Check the status of your 2013 refund with Where's My Refund? Go to IRS. Ammended return gov or the IRS2Go app, and click on Where's My Refund? You'll get a personalized refund date as soon as the IRS processes your tax return and approves your refund. Ammended return If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Ammended return Check the status of your amended return. Ammended return Go to IRS. Ammended return gov and enter Where's My Amended Return in the search box. Ammended return Download forms, instructions, and publications, including some accessible versions. Ammended return Order free transcripts of your tax returns or tax account using the Order a Transcript tool on IRS. Ammended return gov or IRS2Go. Ammended return Tax return and tax account transcripts are generally available for the current year and past three years. Ammended return Figure your income tax withholding with the IRS Withholding Calculator on IRS. Ammended return gov. Ammended return Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Ammended return Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Ammended return gov. Ammended return Locate the nearest Taxpayer Assistance Center using the Office Locator tool on IRS. Ammended return gov or IRS2Go. Ammended return Stop by most business days for face-to-face tax help, no appointment necessary — just walk in. Ammended return An employee can explain IRS letters, request adjustments to your tax account or help you set up a payment plan. Ammended return Before you visit, check the Office Locator for the address, phone number, hours of operation and the services provided. Ammended return If you have an ongoing tax account problem or a special need, such as a disability, you can request an appointment. Ammended return Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Ammended return Locate the nearest volunteer help site with the VITA Locator Tool on IRS. Ammended return gov. Ammended return Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Ammended return The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Ammended return Most VITA and TCE sites offer free electronic filing and some provide IRS-certified volunteers who can help prepare your tax return. Ammended return AARP offers the Tax-Aide counseling program as part of the TCE program. Ammended return Visit AARP's website to find the nearest Tax-Aide location. Ammended return Research your tax questions. Ammended return Search publications and instructions by topic or keyword. Ammended return Read the Internal Revenue Code, regulations, or other official guidance. Ammended return Read Internal Revenue Bulletins. Ammended return Sign up to receive local and national tax news by email. Ammended return Phone. Ammended return You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Ammended return Download the free IRS2Go mobile app from the iTunes app store or from Google Play. Ammended return Use it to watch the IRS YouTube channel, get IRS news as soon as it's released to the public, order transcripts of your tax returns or tax account, check your refund status, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Ammended return Call to locate the nearest volunteer help site, 1-800-906-9887. Ammended return Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Ammended return The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Ammended return Most VITA and TCE sites offer free electronic filing. Ammended return Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Ammended return Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Ammended return Call to check the status of your 2013 refund, 1-800-829-1954 or 1-800-829-4477. Ammended return The automated Where's My Refund? information is available 24 hours a day, 7 days a week. Ammended return If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Ammended return Before you call, have your 2013 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Ammended return Where's My Refund? can give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Ammended return Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Ammended return Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Ammended return Call to order forms, instructions and publications, 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions and publications, and prior-year forms and instructions (limited to 5 years). Ammended return You should receive your order within 10 business days. Ammended return Call to order transcripts of your tax returns or tax account, 1-800-908-9946. Ammended return Follow the prompts to provide your Social Security Number or Individual Taxpayer Identification Number, date of birth, street address and ZIP code. Ammended return Call for TeleTax topics, 1-800-829-4477, to listen to pre-recorded messages covering various tax topics. Ammended return Call to ask tax questions, 1-800-829-1040. Ammended return Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Ammended return The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Ammended return These individuals can also contact the IRS through relay services such as the Federal Relay Service available at www. Ammended return gsa. Ammended return gov/fedrelay. Ammended return Walk-in. Ammended return You can find a selection of forms, publications and services — in-person, face-to-face. Ammended return Products. Ammended return You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Ammended return Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Ammended return Services. Ammended return You can walk in to your local TAC most business days for personal, face-to-face tax help. Ammended return An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Ammended return If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. Ammended return No appointment is necessary—just walk in. Ammended return Before visiting, check www. Ammended return irs. Ammended return gov/localcontacts for hours of operation and services provided. Ammended return Mail. Ammended return You can send your order for forms, instructions, and publications to the address below. Ammended return You should receive a response within 10 business days after your request is received. Ammended return  Internal Revenue Service 1201 N. Ammended return Mitsubishi Motorway Bloomington, IL 61705-6613 The Taxpayer Advocate Service Is Here to Help You. Ammended return   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Ammended return Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Ammended return What can TAS do for you?   We can offer you free help with IRS problems that you can't resolve on your own. Ammended return We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Ammended return You face (or your business is facing) an immediate threat of adverse action. Ammended return You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. 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Internal Revenue Bulletin:  2014-9 

February 24, 2014 

Notice 2014–10

Section 5000A Transition Relief for Individuals with Certain Government-Sponsored Limited-Benefit Health Coverage


This notice provides relief from the individual shared responsibility payment required under § 5000A of the Internal Revenue Code for months in 2014 in which individuals have, under Medicaid and chapter 55 of Title 10, U.S.C., limited-benefit health coverage that is not minimum essential coverage.

BACKGROUND

For each month beginning after December 31, 2013, § 5000A requires individuals to either maintain minimum essential coverage for themselves and any nonexempt family members, qualify for an exemption, or include an individual shared responsibility payment with their Federal income tax return. A taxpayer is liable under § 5000A for any nonexempt individual whom the taxpayer may claim as a dependent.

Under § 5000A(f)(1)(A), minimum essential coverage includes coverage under certain specified government-sponsored programs (“government-sponsored minimum essential coverage”). On August 30, 2013, the Treasury Department and the Internal Revenue Service (IRS) published final regulations under § 5000A. The final regulations provide that government-sponsored minimum essential coverage includes coverage under the Medicaid program under Title XIX of the Social Security Act (42 U.S.C. 1396 and following sections), other than the following limited coverage under Medicaid:

optional coverage of family planning services under section 1902(a)(10)(A)(ii)(XXI) of the Social Security Act (42 U.S.C. 1396a(a)(10)(A)(ii)(XXI)) (“family planning services Medicaid”), optional coverage of tuberculosis-related services under section 1902(a)(10)(A)(ii)(XII) of the Social Security Act (42 U.S.C. 1396a(a)(10)(A)(ii)(XII) (“tuberculosis-related services Medicaid”), coverage of pregnancy-related services under section 1902(a)(10)(A)(i)(IV) and (a)(10)(A)(ii)(IX) of the Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i)(IV), (a)(10)(A)(ii)(IX)) (“pregnancy-related Medicaid”), and coverage limited to treatment of emergency medical conditions in accordance with 8 U.S.C. 1611(b)(1)(A), as authorized by section 1903(v) of the Social Security Act (42 U.S.C. 1396b(v)) (“emergency medical conditions Medicaid”). The final § 5000A regulations also provide that government-sponsored minimum essential coverage includes medical coverage under chapter 55 of Title 10, U.S.C., including coverage under the TRICARE program.

The final § 5000A regulations reserve on whether certain government-sponsored programs that provide limited benefits are minimum essential coverage, including (i) coverage authorized under section 1115 of the Social Security Act (“Section 1115 demonstration projects”); (ii) coverage for medically needy individuals, see section 1902(a)(10)(C) of the Social Security Act (42 U.S.C. 1396a(a)(10)(C)) and 42 CFR 435.300 and following sections; (iii) coverage under section 1079(a), 1086(c)(1), or 1086(d)(1) of Title 10, U.S.C., for certain individuals who are excluded from TRICARE coverage for health care services from private sector providers and only eligible for space available care in a facility for the uniformed services (“space available care”); and (iv) coverage under sections 1074a and 1074b of Title 10, U.S.C., for individuals not on active duty who are entitled to episodic care for an injury, illness, or disease incurred or aggravated in the line of duty (“line-of-duty care”). See § 1.5000A–2(b)(2) (78 FR 53646, 53658).

The preamble to the final § 5000A regulations indicates that future guidance will provide that the government-sponsored limited-benefit coverage reserved on in the final § 5000A regulations is not minimum essential coverage. However, the preamble to the final § 5000A regulations also indicates that, if future rulemaking clarifies that such limited-benefit coverage is not minimum essential coverage, individuals with that coverage for a month in 2014 will not be subject to the § 5000A individual shared responsibility payment for that month. See T.D. 9632 (78 FR 53646, 53648–53650).

Proposed regulations (REG–141036–13) published concurrently with this notice provide that coverage under certain Section 1115 demonstration projects authorized under section 1115(a)(2) of the Social Security Act (42 U.S.C. 1315(a)(2)), coverage for medically needy individuals, space available care, and line-of-duty care is not government-sponsored minimum essential coverage.

DISCUSSION

Individuals enrolled in family planning services Medicaid, tuberculosis-related services Medicaid, pregnancy-related Medicaid, emergency medical conditions Medicaid, certain Section 1115 demonstration projects, coverage for medically needy individuals, space available care, or line-of-duty care may not know when enrolling for the 2014 coverage year that such coverage is not minimum essential coverage. Accordingly, to provide relief to individuals in this situation (or to taxpayers who are liable under § 5000A for other individuals in this situation), and consistent with the preamble to the final regulations, the § 5000A shared responsibility payment is not imposed with respect to an individual for months in 2014 when the individual has coverage under family planning services Medicaid, tuberculosis-related services Medicaid, pregnancy-related Medicaid, emergency medical conditions Medicaid, a Section 1115 demonstration project authorized under section 1115(a)(2) of the Social Security Act (42 U.S.C. 1315(a)(2)), coverage for medically needy individuals, space available care, or line-of-duty care.

The relief provided by this notice applies only for determining a taxpayer’s § 5000A individual shared responsibility payment for not maintaining minimum essential coverage in 2014. Solely for the purpose of determining whether a period without coverage qualifies as a short coverage gap described in § 5000A(e)(4), an individual will be treated as having minimum essential coverage for any month in 2014 when that individual is eligible for the transition relief provided by this notice.

DRAFTING INFORMATION

The principal author of this notice is John B. Lovelace of the Office of Associate Chief Counsel (Income Tax & Accounting). For further information regarding this notice contact Mr. Lovelace at (202) 317-7006 (not a toll-free number).


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