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Basic tax question

Posted on 3/7/14 at 7:48 pm
Posted by ClydeFrog
Kenya
Member since Jul 2012
3261 posts
Posted on 3/7/14 at 7:48 pm
I was in grad school last year and didn't have a job. I got a job that started at the end of January this year and got my first paycheck then but I did get a moving allowance in December. I haven't received a W2 for that moving allowance. Am I supposed to file taxes on that moving pay or will that be next year?
Posted by Taxing Tiger
Member since Mar 2013
635 posts
Posted on 3/7/14 at 8:45 pm to
LINK

Check out IRS Pub. 521 linked above. All depends on the circumstances (accountable or nonaccountable plan; date you received the reimbursement; etc). The publication is pretty easy to read and doesn't require a ton of tax knowledge.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37024 posts
Posted on 3/8/14 at 7:42 am to
Was it an allowance or was it in the form of a forgiveable loan? In other words, did you sign anything saying you would have to pay back part or all of it if you don't stay with your employer for a certain period of time?
Posted by Ace Midnight
Between sanity and madness
Member since Dec 2006
89480 posts
Posted on 3/8/14 at 9:31 am to
quote:

I haven't received a W2 for that moving allowance. Am I supposed to file taxes on that moving pay or will that be next year?


Expenses for thing like this are often nontaxable. However, they should be reported. I would keep good documentation on your moving expenses (as they are deductible, if you pay out of pocket) to at least offset or negate any tax liability for the moving allowance. Check with your payroll people to see if they're bringing it forward or if it is an oversight.

You can always file and amended return, of course, but you've got 5 weeks until tax day - that's enough time to get it right.

Pub 521 will be your guide here.
Posted by ClydeFrog
Kenya
Member since Jul 2012
3261 posts
Posted on 3/8/14 at 1:25 pm to
I would need to repay the amount if I failed the tests I had to take after being hired because I would lose my job if I failed. I've just passed that part and made the move so the money would still be mine even if I left tomorrow.

And thanks for the responses.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37024 posts
Posted on 3/9/14 at 8:53 am to
So you passed the tests in 2014? If so it's definetly not a 2013 income. It could be income in 2014 depending upon how the money was paid and used etc. The IRS pub listed above will help you figure that out. Plus if the company is big enough the HR and payroll people may be able to help.
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