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Case Study 1: Military ReimbursementsCaptain Cook received orders for a PCS. Using his own vehicle, he packed his household goods and drove to the new duty station. The Air Force estimated that the move would have cost the government $2,500. Captain Cook's actual expenses for the move were $1,750. He received a payment for $2,375 (95 percent of the government's estimate). Box 1 on Form W-2 shows only $625 ($2,375 minus $1,750) for the Personally Procured Move (PPM) (formerly called a Do-It-Yourself (DITY) move). Can Captain Cook deduct his moving expenses? Click here for an explanation. Captain Cook cannot deduct any of his expenses, since he was already reimbursed. The U.S. Armed Forces provides an incentive payment equal to 95 percent of the estimated cost to the government for PPM. When the move is completed, the Armed Forces member provides receipts and paperwork to substantiate authorized expenses. The net financial profit is taxable, and is reported on a separate Form W-2. 
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