Military Adjustments to Income

Time Requirement: 30 minutes

Purpose

This lesson teaches students how to identify qualifying moves, allowances and reimbursements, and deductible moving expenses for members of the U.S. Armed Forces.

Objectives

• Determine if a move qualifies as a permanent change of station (PCS)
• Identify deductible moving expenses
• Determine when allowances and reimbursements must be included in income

Teaching the Lesson

Refer to the Lesson Plan for helpful instructor notes, visual aids, TaxSlayer® demos, and Internet links. Prompt students to share what they know about military moving expenses.

Refer students who may want to work independently to Publication 4491, Military Adjustments to Income.

Key References

This lesson refers to the following publications and forms:

• Form 13614-C, Page 2, Part III
• Pub 4012, Tab D, Income
• Pub 4012, Tab E, Adjustments
• Pub 3, Armed Forces Tax Guide

All references to materials can be found by clicking Job Aids and Media buttons. There are also links to helpful tools that can be found on the irs.gov public portal. For this lesson the student can link to the following sites for additional help:

• Tax Topics - Moving Expenses

TaxSlayer® Demos and Tutorials

It is recommended to go to the Practice Lab and access TaxSlayer, Adjustments to Income for this lesson.

Publication 4012, Tab D, Income, and Tab E, Adjustments, includes how to report moving expenses as an adjustment to income in TaxSlayer.