Chloe was reimbursed for moving expenses of $3,200. How much can she deduct on her tax return given her actual moving costs were $3,900?

In this scenario, Chloe received a reimbursement for her moving expenses amounting to $3,200. The IRS has specific rules regarding the deductibility of moving expenses, particularly for those who are being reimbursed by an employer. When an individual is reimbursed for expenses, they can only deduct the portion of the expenses that exceeds the amount reimbursed.

Chloe's actual moving costs were $3,900. Since she was reimbursed $3,200, to determine the deductible amount, we need to subtract the reimbursement from her actual moving expenses:

$3,900 (actual costs) - $3,200 (reimbursement) = $700.

This means Chloe can deduct $700 on her tax return, as it represents the portion of her costs that were not covered by her reimbursement. This deduction is aligned with the IRS guidelines that allow for the deduction of unreimbursed expenses associated with moving.