we just pcs'd here in june and I was told by transportation that any money we receive in return for the move would be taxed. Should we be expecting any other forms other than the w-2 to file our taxes?if so when and where do we get them? ALSO, we bought a new car to drive up here, our old one died. I was told here we could have bought it tax free, and someone mentioned a deduction on our taxes since we bought it for the move. Is there some deduction we should know about regarding our new car? thanks!

The money for your move, included in your income,should be separately stated on the W-2. You may deduct the moving expense using Form 3903.

It's a separate issue, not related to your move, but the new car will give you no benefits unless it's electric or some other fuel economy car. Qualified Alternative Fuel Motor Vehicles (QAFMV) are powered solely by alternative fuels, such as compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen and any liquid at least 85 percent of the volume of which consists of methanol. Vehicles powered by a combination of an alternative fuel and a petroleum-based fuel may qualify for a reduced credit. Purchases of new vehicles with special equipment, as well as ones converted for alternative power, may qualify.

Back to your move, "qualifying expenses" are defined as military moving expenses that fall into the following two categories:

The cost of moving household goods and personal effects


The cost of reasonable travel and lodging expenses from the old home to the new home
Only the qualifying expenses that exceed government allowances and reimbursements are deductible.

Nondeductible Expenses

Service members cannot deduct the following items as moving expenses:

Any part of the purchase of new home
Expenses of buying or selling a home
Expenses of getting or breaking a lease
Home improvements to help sell a home
Loss on the sale of a home
Meal expenses
Mortgage penalties
Pre-move house hunting expenses
Security deposits
Temporary living expenses

thank you for answering. But that money is NOT included on the w-2 as income. It was seperate checks given to us to reimburse for our pcs, such as DLA, and the first 10days hotel stay they pay for. Plus our partial dity. I was told before we pcsd that it would be taxed and we have to file on that.We cannot claim it as deductions if they paid us for it, that makes it income right? Anyway, I have no idea what kind of form to be expecting and from who/where.

RE the car. The federal return allows you to claim a safe harbor for state sales tax. On top of that you can add the sales tax for any large items, like cars, trucks and boats. Then you have the option to deduct on Schedule A the larger of your state income tax (if any) or the state sales tax total. If you live in a state without an income tax (ie FL) then you deduct the sales tax. Of course this only helps if you can itemize.

This URL will give you more detail. If you have an accountable plan, it is shown in Box 12 of your W-2 with the Code P.

http://usmilitary.about.com/library/milinfo/tax2000/blhowtoreport.htm