Question

Last year Pete and Courtney earned over $80,000 in adjusted gross income. Earlier in the year the couple relocated to Houston, Texas, as a result of Courtney's promotion. They spent over $7,000 in moving expenses during this relocation process. Legally they can subtract this moving expense from their income before calculating taxes. This moving expense is known as a(n) ____.

Answer 1

Answer:

deduction

Explanation:

The moving expense deduction was almost eliminated by the last tax reform, Tax Cuts and Jobs Act of 2017, at least until 2026. Currently only active members of the military and their families can claim a moving expense deduction or any type of reimbursement related to moving expenses.