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From: johnson@hplabsc.UUCP (Mark Scott Johnson)
Newsgroups: net.taxes
Subject: Re: Moving expense deductions
Message-ID: <2411@hplabsc.UUCP>
Date: Tue, 19-Feb-85 12:03:05 EST
Article-I.D.: hplabsc.2411
Posted: Tue Feb 19 12:03:05 1985
Date-Received: Wed, 20-Feb-85 03:45:39 EST
Organization: Hewlett Packard Labs, Palo Alto CA
Lines: 37

>I have a question about the moving expense deduction.  Last year I moved
>out of a well-paying job in California into a poorly paying "job" as
>a student in Washington.  Naturally, even though my moving expenses
>were minimal, I'd like to deduct them, poor student that I now am.
>However, careful examination of the 3903 form reveals that moving
>expenses are defined as expenses incurred in moving to a new residence
>as a result of a change in employment.  What does that mean for me?
>Will the IRS tell me that I don't qualify because I moved in order to
>go to school?  

	Being a student, per se, is not a job.  However, even a part-time
	job--such as being a teaching or research assistance--does qualify
	you to deduct the move (provided, of course, the other requirements
	are met).

>However, I can file a form which states that the work I do is
>a requirement for my degree and thus duck taxes on the income.
>But if I do this, am I screwing my claim for a moving expense deduction?

	Most definitely!  I was audited and lost on this very point
	(yes, the IRS does audit graduate students).  To claim the moving
	deduction, it must be applied against *taxable* income.  On the
	other hand, if your income isn't taxable, why do you care whether
	or not your move is deductible?  Your tax liability should be
	negligible.

	By the way, excluding you RA/TA income may make you ineligible for
	income average when you return to non-student status.  Altho the
	benefits of income averaging have declined, it still may be to
	your long-term advantage to declare the income and pay taxes on it
	now, when you're in a lower tax bracket.  Consult a tax advisor
	for details.
-- 
Mark Scott Johnson
CSnet:   Johnson%hplabs@csnet-relay.csnet
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