A-17. A taxpayer (civilian) was transferred by his employer from Miami to Los Angeles in 2022 and received $19,000 as reimbursement for his moving expenses. Generally speaking, which tax treatment does this reimbursement receive? (Best option) o The taxpayer receives the moving expense reimbursement entirely tax-free. The moving expense reimbursement is not taxable to the taxpayer.
A-17. A taxpayer (civilian) was transferred by his employer from Miami to Los Angeles in 2022 and received $19,000 as reimbursement for his moving expenses. Generally speaking, which tax treatment does this reimbursement receive? (Best option) o The taxpayer receives the moving expense reimbursement entirely tax-free. The moving expense reimbursement is not taxable to the taxpayer.
Chapter13: Tax Credits And Payment Procedures
Section: Chapter Questions
Problem 1CPA
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Transcribed Image Text:A-17. A taxpayer (civilian) was transferred by his employer from Miami to Los Angeles in
2022 and received $19,000 as reimbursement for his moving expenses. Generally
speaking, which tax treatment does this reimbursement receive? (Best option)
o The taxpayer receives the moving expense reimbursement entirely
tax-free.
The moving expense reimbursement is not taxable to the taxpayer.
The reimbursement payment made by the taxpayer's employer is
taxable.
The reimbursement payment is considered a non-charitable gift
and subject to gift taxes.
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