Question 1 Which of the following is a permanent change of station A A move by

Question 1 which of the following is a permanent

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Question 1: Which of the following is a permanent change of station? A. A move by an Air Force pilot to an airbase for a six-month detail B. A move by an Army sergeant to his home two years after he ended active duty C. A move by a new enlistee from her home to her first post of duty D. A temporary move by a U.S. Marine to attend a six-month training program What expenses are included in the moving expense adjustment? Qualifying military moving expenses fall into the following two categories, the cost of: Moving household goods and personal effects Reasonable travel and lodging expenses To qualify as “reasonable,” the route taken must be the shortest, most direct route available, from the former home to the new home. Additional expenses for stopovers, side trips, or pre-move house hunting expenses are not deductible as moving expenses. Qualifying expenses that exceed government allowances and reimbursements are deductible. Use Publication 521 as a resource for additional information. This publication has detailed information on deductible and nondeductible moving expenses. It also contains a special section on members of the Armed Forces. How do I handle military reimbursements? Determine whether any moving allowances or reimbursements provided by the government should be included in a service member’s income, and how to accurately report the deduction on Form 1040. What is a Personally Procured Move (PPM) Typically, Armed Forces members move their own household items in a personal or rented vehicle; this is called a Personally Procured Move (PPM), formerly known as a Do-It-Yourself (DITY) move. The Armed Forces provides an incentive payment equal to 95% of the estimated cost to the government for PPM. When the move is completed, the Armed Forces member provides receipts and paperwork to substantiate authorized expenses. The net financial profit is taxable and is reported on a separate Form W-2. How do I report a PPM? PPM payments are entered as income on Form 1040, line 7. Armed Forces members may not take a moving expense deduction based on the expenses approved by the finance office when settling the PPM, as they have already been used to reduce taxable income.
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Military Moving Expenses 19-3 example Captain Cook receives orders for a PCS. He chooses to pack and drive his household goods to the new duty station in his own vehicle. The Air Force estimates that the move would have cost the government $2,500. Captain Cook’s actual expenses for the move were $1,750. He receives a payment for $2,375 (95% of the government’s estimate), but Form W-2, box 1, will show only $625 ($2,375 minus $1,750) for the PPM. Captain Cook cannot deduct any of his expenses, since he’s already been reimbursed. What forms of reimbursement are not included as income?
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