Am I going to owe my life savings in taxes? Please & TIA
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Am I going to owe my life savings in taxes? Please & TIA
Posted by Paige on 1/28 at 1:06 pm
I guess my question is what does tax assisted mean

I relocated earlier this year and
my work paid for all of it

I just got this statement and it says the $17k in moving expenses was taxable

In the initial relocation contract it said something about everything being taxed up (except the bonus). I thought that meant I wouldn't have to pay taxes on it

Am I going to be completely screwed?



This post was edited on 1/29 at 9:47 am

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Posted by 8thyearsenior on 1/28 at 2:45 pm to Paige
I didn't read all your forms but I relocated last year and yes the movers are reported as taxable income. My company did some kind of gross up to help with the taxes were it didn't sting. I assume yours did the same.

I would think that you or a good tax guy can think of a lot of deductions that were move related.



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Posted by Paige on 1/28 at 3:47 pm to 8thyearsenior
Yeah, that's what contract says is they were going to be grossed up or something

I know whoever does my taxes will be able to figure it out. But I haven't gotten my w-2 yet and I'm freaking out

So I was hoping someone knew if I was going to have to pay taxes on all that



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Posted by 8thyearsenior on 1/28 at 4:04 pm to Paige
I wrote off a bunch of stuff related to the move. I also sold and bought a house so I had stuff from that. All in all I got money back on my return. Be creative and live in the grey area on your return.


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Posted by foshizzle on 1/28 at 4:23 pm to Paige
IRS regs

It seems certain moving expenses are in fact tax-deductible but you'll want to dig into the details. Your employer will report it as taxable income but you can do deductions on your return if they apply.



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Posted by Poodlebrain on 1/28 at 6:58 pm to Paige
There are too many unknowns to provide definitive answers to your questions. You must satisfy a distance and time test for your moving expenses to be deductible. IRS Publication 521 should have the answers to your questions. LINK


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Posted by PlanoPrivateer on 1/28 at 7:54 pm to Paige
What is the $3301? Did you submit expenses for that amount? $3301 is just about 25% of the $13,664. Is it possible they are grossing up your pay or bonus to cover your approximate tax on the actual moving expense? Of course, they would have to pay you the $3301 for you to use to pay the tax.


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Posted by Paige on 1/29 at 8:23 am to 8thyearsenior
If I get money back that'll make my day

Foshizzle, I guess I'll have to itemize so I'll have to get an accountant. If they are deductible that means I won't have to pay those taxes right?




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Posted by Paige on 1/29 at 8:27 am to PlanoPrivateer
They said they'd gross up. So I assumed that meant I wouldn't be paying taxes on it but then I get this statement. Here's what everything was for. The majority was housing and I wouldn't have stayed in a $4500 a month apt



Poodlebrain, I moved from Shreveport to Houston. Hopefully that means something



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Posted by sneakytiger on 1/29 at 10:39 am to Paige
"Grossing up" means that part of the payment you received is to cover taxes owed. I'm not sure how this works for the expenses your employer paid the 3rd party directly though.


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Posted by PurpleAndGold86 on 1/30 at 9:28 am to Paige
quote:

I guess I'll have to itemize so I'll have to get an accountant


Moving expenses are an "above the line" deduction, meaning it does not matter whether or not you itemize, you can still take the deduction as a direct reduction of your income.

From the list of expenses you provided I do not think that househunting and lease cancellation fees are expenses that can be deducted. I also don't believe that temporary living expenses are deuctible and that looks like it is a large part of the expenses.



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Posted by Poodlebrain on 1/30 at 10:09 am to Paige
Reviewing the information you provided it appears that your employer's plan is a nonaccountable plan. So your W-2 should include $17,021.58 of expenses paid for your relocation in your Box 1 gross salary. Your employer should have withheld and paid the appropriate taxes on the compensation.

You will need to file Form 3903 to report the deductible expenses paid for relocation. Those would be the costs of transporting your household goods from Shreveport to Houston, and your costs to travel from Shreveport to Houston. You do not have to report any reimbursements on Form 3903.



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Posted by Paige on 1/31 at 9:10 am to Poodlebrain
Oh this sounds like good news and they did do something to cover the taxes like I thought

Thank y'all



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