QUESTION DETAIL
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I lived in two separate foreclosed homes during 2010, and was paid a total of $5,500 by two separate banks (one payment in July, the other in November) to move out of them. Do I put this on line 21? Are my actual moving expenses deductible from this total?
ANSWER
Expert Thomas Graham iii's Answer:
It is hard to know without knowing exactly what they were paying you for. Chances are these amounts will need to be included as income however. The banks ought to send a tax form in January stating the amounts paid to you during the prior year. You would need to include those on your personal income tax return. Chances are if it doesn't fit any where else then it belongs on line 21.
Your moving expenses aren't going to be deductible from this amount. If you received a moving reimbursement from your employer than that amount is used to take away from what moving expenses you can deduct. You will need to determine if you meet the qualifications to even deduct moving expenses. Moving expenses can be deducted on IRS Form 521 and it will also include information on how to determine if you qualify.
