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Military Course > Military Adjustments to Income

Military Adjustments to Income

This lesson explains how to determine which members of the U.S. Armed Forces are entitled to an adjustment to income for moving expenses.

See the interview tips in Publication 4012 for helpful probing questions to use in your interview with the taxpayer

Click the Skills Workout button to learn more about Military Adjustments to Income.

Skill Check

Check your understanding of how to report military moving expenses and reimbursements. Indicate whether each of the statements below is true or false by clicking on the correct answer. To check your answers, click the Check My Answers button at the bottom of the page.

  1. Sgt. Peter Guilford was transferred to Iraq in December of last year from his home base in San Diego. His tour in Iraq will be completed in December of the current year. In January of the current year, his wife moved with their three children from San Diego to her hometown in Modesto, California to be near her family during his absence. Will she be able to deduct her moving expenses under the permanent change of station requirements?
  • A.
  • B.
  1. Mildred, a member of the U.S. Army, had to move when her military base closed. She received a military base realignment and closure benefit from the DOD. Does she have to pay taxes on this income?
  • A.
  • B.
  1. Is the cost of shipping household pets a deductible moving expense?
  • A.
  • B.