So I’ll be doing my first big PCS and as a full dity. Moving expenses like all the boxes or movers are tax deductible, but at the end of the year with such a low taxable income I don’t owe taxes at the end of the year. I’m not sure if I’m misunderstanding this, but does this do anything for me?
Thank you!
Full Dity (PPM) moving expenses being tax deductible question
byu/oNellyyy inMilitaryFinance
Posted by oNellyyy
2 Comments
The PPM incentive payment is taxable income. Your moving expenses are deductible from that amount “above the line.” You can still use the standard deduction.
When you file your PPM claim, you’ll list your deductible expenses there. Then you receive that amount (assuming it’s less than your incentive payment) as tax free money. Any amount above that is taxable and there is withholding (22% federal plus whatever your state requires). Any deductible expenses you claim when you get your PPM can’t be claimed on your tax return.
The alternative is to take the full amount as taxable income and then claim the expenses on your return.
Shit gets taxed. It changed under the trump tax plan.