If your employer directly or indirectly pays for moving expenses that would
have been deductible if you had paid them, the payments are not included in
your income. If your employer pays you a moving expense allowance, you should
include it in your taxable income and report your actual moving expenses on
Form 3903.
No-Additional-Cost Services
These are excess capacity services such as airline, bus, or train tickets,
hotel rooms, or telephone service provided to you as an employee for free, at
cost, or at a reduced price. These are not included in your income if your
employer provides the same services to customers in the ordinary course of the
line of business, and it does not have a substantial additional cost to provide
you with the services.
Reciprocal agreements for an unrelated employer to provide
no-additional-cost services may qualify for exclusion if the following tests
are met:
The service is the same type
of service provided by your employer in the line of business in which you
work.
Your employer and the
unrelated employer have a written reciprocal agreement under which a group
of employers from both employers may receive no-additional-cost services
from the other employer.
Neither employer incurs any
substantial additional cost in providing the service.