The relocation assistance is taxable and as you indicated and should be in Boxes 1, 3, 5, and 16 (assumes your state follows federal law). It should not be included in Box 12. For this reason your employer should issue a corrected W-2, however if the employer is not willing to do that you would file your tax return without an entry in Box 12. Be prepared with your pay stubs, relocation documents to maintain with your tax return.
Confirm you did have the correct amount of social security tax and medicare tax withheld from your pay by using the formulas below.
- Double check the Box 3 amount x .062 equals the amount in Box 4 - social security tax on your wages
- Double check the Box 5 amount x .0145 equals the amount in Box 6 - medicare tax on your wages
If these figures are correct, then you have paid the required amount.
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