- quote -

The only thing listed in box 12 is $237. This was for a
plane ticket they paid for, no where else are the rest of
the moving expenses noted.

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In two of my relocations, the full expense was reported on
the W2 event though the employer paid. And they did a tax
gross up (not perfect) for the known(*) marginal backet
excluded the $3000 deductable.

(*) Because they did not know other job and investment
income, they were one bracket too low.

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I knew the wording was confusing.

Here is some background. The part of the year I worked with
them, I earned about $10,000 before tax.

However my W2 shows $22,000 in compensation with 5000
witheld (approx) while I only actually paid 2000 in taxes
myself from my "actual compensation. The rest of the money
on the W2 is from the moving expenses THEY paid the mover
and car movers, and from the money they paid in to the
government for me on that as well. The box 12 also only
shows a $237 moving expense. So as far as UNCLE SAM knows, I
paid for the move. I have a copy of the bill, I paid the
taxes on the money they paid me to pay for the move, (while
not actually ever in my hands). This makes a HUGE difference
in the amount of my refund and I just want to be 100%
correct before sending these in.

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inground2004[at]yahoo.com wrote:

- quote -

I think you may need to have a conversation with your
employer. When an employer pays the moving company directly
for a qualified move, there is no reporting. There should be
no entry on your W-2 and no uplift for tax assistance is
required. The only entries on the W-2 would be for
reimbursement of the nonqualified expenses. If your move was
a qualified move (otherwise deductible under the Internal
Revenue Code) then the W-2 is wrong if the moving expenses
are in Box 1. If this was not a qualified move, the W-2 is
correct and you don't get a deduction. That's why you got
the tax assistance.

--
Alan
http://taxtopics.net

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<inground2004[at]yahoo.com> wrote:

- quote -

While they're probably right, be sure to review Publication
521 for a discussion of allowable moving expenses.

- quote -

Just ignore everything except the fact that the company-paid
expenses were included in your wages.

- quote -

Since the $237 was not included in your wages, you can't
deduct that expense.

- quote -

I'm not sure what you mean about the employer's paying the
taxes. I suspect you're thinking of withholding, which is
included in box 2 of the W-2 along with withholding on your
wages.

Anyway, see the section on reimbursements in pub 521.
You'll be deducting your allowable expenses on Form 3906.

--
Phil Marti
Clarksburg, MD

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There may be some confusion on your part on what happened or
what the company is telling you. How could the company know
what the impact of them paying your moving expenses on your
taxes would be? Your just doing your tax returns now,
right. Maybe the moving expenses were really just, say
$9,000, and the company paid you another $3000 to address
what they guessed the tax impact on you might be.

When you are doing your tax return now with the extra $12000
of compensation shown, you will be paying the taxes. Do
your taxes without the $12000 and you will see impact.

You should claim the moving expenses.

BC

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My wife and I transferred with a job in October to a new
location. The employer paid all of these benefits. Most of
them never came out of our pocket. We got a statement
showing what they paid for and a letter explaining that we
could deduct this on our taxes. The total was for about
$12000 about $8000 of which was the actual MOVING COMPANY
cost which was direct billed to them and they inserted that
money on our W2 and tax-assisted it, meaning they paid the
taxes on it too. (I hope ya'll aren't confused yet, as I
already am)

Now, on the W2 under BOX 12 the only moving expense listed
there is a $237 plane ticket that they paid for. The rest of
it was just included under wages.

My question is, since I have a bill for this as they sent me
the statement, can I deduct these moving expenses since
essentially I paid taxes on them (even though the employer
paid the taxes, although there is no way for the IRS to know
this since it is not listed anywhere)? Hopefully someone can
sort out my situation through the confusing mess I have
written!!

Thanks

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