J.K. Lasser's Your Income Tax 2013: For Preparing Your 2012 Tax Return

12.8 Reimbursements of Moving Expenses

If your employer reimburses you for deductible moving expenses (12.3) under an accountable plan, the reimbursement should not be reported as salary or wage income on Form W-2. The requirements for an accountable plan are similar to those for business travel expenses (20.31).

Qualified moving expenses an employer pays to a third party, such as to a moving company, are not reported on Form W-2.

A reimbursement for expenses that do not qualify for a deduction, such as pre-move house-hunting costs, temporary living expenses, meal costs, or real estate expenses, is reported as compensation on your Form W-2.

On Form 3903, you report your deductible expenses in excess of nontaxable reimbursements, and enter the deductible amount on Form 1040, Line 26, as an adjustment to gross income.

If in 2011 you had deductible moving expenses that you claimed on your 2011 return and you receive a reimbursement for the expenses in 2012, you report your employer’s reimbursement as compensation in 2012. Alternatively, you may delay the deduction until 2012, the year of the reimbursement. You may deduct on your 2012 return the excess of your 2011 expenses over the nontaxable reimbursement received in 2012.