Question

Maxine is a gunnery sergeant in the U.S. Marine Corps. In May of 2022, her duty station changed from the Marine Barracks Washington, D.C., to Camp Lejeune in North Carolina. She drove 348 miles and spent 1,150 to move her household items. Maxine also incurred closing costs of1,040 when she sold her home in her former city. She received this Form W-2 reporting her moving expense reimbursement. Choose the response that correctly identifies the amount of Maxine's moving expense deduction.

1) $1,150
2) $2,190
3) $3,230
4) Cannot be determined

Answer 1

The correct amount of Maxine's moving expense deduction is 3) $3,230.

Step-by-step explanation:

Maxine's moving expense deduction includes the costs she incurred for moving her household items, which is $1,150, the distance-related expenses. Additionally, Maxine can deduct the closing costs she paid when selling her home, which is $1,040. Furthermore, the IRS allows a deduction of $0.18 per mile driven for the move, considering the distance from Marine Barracks Washington, D.C., to Camp Lejeune is 348 miles. Therefore, the mileage deduction is
`\(348 * $0.18 = $62.64.\)`

The total moving expense deduction is the sum of these components: $1,150 + $1,040 + $62.64 = $3,252.64. However, since the provided options don't have this exact amount, the closest option is 3) $3,230, which is the correct answer.

It's important to note that Maxine's moving expense reimbursement reported on Form W-2 does not affect the deduction calculation. The reimbursement is reported for informational purposes and does not directly impact the deductibility of qualified moving expenses. The deduction is determined by the actual eligible expenses incurred during the move.