In January, Susan’s employer transferred her from Chicago to Houston (where she continues to work for the remainder of the year). Her expenses are as follows:

Transportation for household goods

$2,300

Airfare from Chicago to Houston

200

Pre move house hunting travel

700

Temporary living expenses in Houston

400

Apartment lease cancellation fee

1,200

Total moving expenses paid

$4,800

a. If Susan is not reimbursed for any of these expenses, how much of her moving expenses can she deduct?

If Susan’s employer reimburses her $3,600 for all of these moving expenses except for the lease cancellation fee, will she have any taxable income?