Look on your Form W-2, box 12. If there is an amount with a code P, that amount is included in your taxable income. You should take a moving expense deduction to avoid paying tax on your reimbursements. You should also take a moving deduction if your employer included your reimbursement with wages in box 1 of Form W-2.
Is my relocation allowance taxable?
The short answer is “yes”. Relocation expenses for employees paid by an employer (aside from BVO/GBO homesale programs) are all considered taxable income to the employee by the IRS and state authorities (and by local governments that levy an income tax).
Does your address have to be correct on your W-2?
The address on the W-2 makes no difference. Just enter the address in the personal information section where you receive your mail.
When do you get your W-2 from your employer?
Sometimes your employer can derail your tax season. Earlier this year, employees received their Form W-2 from their employers, detailing how much they earned, what they contributed to any retirement plan and how much was withheld in taxes. You were supposed to get your W-2 by Jan. 31.
Where are moving expenses reported on a W-2?
Qualified moving expense reimbursements paid directly to an employee by an employer are reported only in box 12 of Form W-2 with code P. Nonqualified moving expenses and expense reimbursements are reported in boxes 1, 3, and 5 (use box 14 if railroad retirement taxes apply) of Form W-2.
Where does the employer report tax withheld on a W-2?
If the employer withholds income tax, the employer must report the tax withheld in box 2 of Form W-2 and on line 8 of Form 943. See Pub. 51 (Circular A). Form 1099-MISC.
What happens when you get a corrected W-2 from your employer?
Once in a while, those motivated taxpayers get a surprise in the mail sometime later: a corrected W-2 from their employer. The upshot: You may have filed a return with the wrong data and may have to amend it.