My employer paid for a $17k moving expense. They paid the moving company directly. They then 'grossed up' that amount and paid $10k directly to the tax authorities.
But now my W2 Box 1 wages includes the $17k and the $10k, so I will be taxed on the full $28k. I never got any of the gross up paid to me.
Does something seem off here? Why would I be taxed for $10k sent to the tax authorities that I don't even get credit for?
