Military Scenario 2: Chad and Cindy Winters: Interview Notes:

Chad and Cindy lived in Jacksonville, FL where Chad was stationed in the Navy for four years. He received new orders to move to San Diego, CA naval base. This is a permanent change of station (PCS).

They decided to make a Personally Procured Move (PPM).

Cindy traveled to San Diego in May to find a house to rent. She wanted a home close to the beach. She spent $1,475 on round-trip airfare, hotel, food, and rental car.

Chad and Cindy spent $315 on boxes, tape, bubble wrap, and mattress bags. They paid $750 for the rental truck.

On June 2, 2022, Chad and Cindy packed up their belongings and began driving from Jacksonville to San Diego. Along the way, they stopped in Houston, TX to visit their parents. Their trip took a total of 11 days and 10 nights instead of the authorized 5 nights for travel.

The Winters drove their rental truck a total of 2,538 miles. The shortest, most direct route calculated by the Navy was 2,354 miles.

The allowable lodging per diem was $88 per night.

Chad and Cindy spent $535 for food and $86 on cowboy hats. They spent a total of $150 on rodeo tickets while in Houston. They paid $35 in highway tolls and $40 for parking as part of the expected move.

Their move was estimated to cost $2,100 and the Navy provided $1,890 in advance.

Chad and Cindy are U.S. citizens and have valid Social Security numbers.

Military Scenario 2: Test Questions:

1. The Winters net financial profit from the move will be reported on:

a. Form 1040 Schedule A, Itemized Deductions

b. Form 1099-INT, Interest Income

c. Form W-2, Wage and Tax Statement

d. It doesnt need to be reported.

2. The Winters can deduct the cost of their side trip and house hunting trip as qualified moving expenses.

a. True

b. False

3. How much can Chad and Cindy claim for the mileage $ _______. (Round to nearest dollar)

a. $424

b. $457

c. $1,377

d. $1,485

4. How much can Chad and Cindy claim as their total qualified lodging expenses?

a. $0

b. $88

c. $440

d. $880