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timconsc-gmail-c
New Member

Where do I put the taxes paid on our behalf by an employer on the 1040 to offset the tax we owe on a lump sum relocation package?

My husband received a relocation package.  The employer paid the income taxes to a third party (the Federal Govt' and state gov't) separately.  Where do I put this on the 1040 or is there a special form for this?
8 Replies
KrisD15
Expert Alumni

Where do I put the taxes paid on our behalf by an employer on the 1040 to offset the tax we owe on a lump sum relocation package?

To clarify, 

are you reporting the "relocation package" as income?

If so, how was that reported? What form? 

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VolvoGirl
Level 15

Where do I put the taxes paid on our behalf by an employer on the 1040 to offset the tax we owe on a lump sum relocation package?

The tax withholding should be listed on the form you got.  Either on you W2 or a 1099.  It might be included in box 2 and 17 on the W2.  Ask your employer.

timconsc-gmail-c
New Member

Where do I put the taxes paid on our behalf by an employer on the 1040 to offset the tax we owe on a lump sum relocation package?

The relocation package was reported as income on his W-2. He was told they provide tax assistance so that he actually receives the full relocation amount.  He received a statement showing the amount he was paid and the amounts that the relocation company paid to the Federal and state Gov't on his behalf.  But it's just a statement not  a 1099 or any other actual govenrment form.

VolvoGirl
Level 15

Where do I put the taxes paid on our behalf by an employer on the 1040 to offset the tax we owe on a lump sum relocation package?

If the income is on his W2 then the tax paid should be in box 2. Included with his regular withholding.  Double check with the employer.   They might have grossed up the income so after the withholding it netted out to the full amount he got.  

timconsc-gmail-c
New Member

Where do I put the taxes paid on our behalf by an employer on the 1040 to offset the tax we owe on a lump sum relocation package?

The relocation package was reported as income on the W-2.  The issue is that the relocation company paid the taxes for him.  It is the second scenario described here:

"In order to offset the cost of income tax, some employers will either deduct the taxable portion of the funds given for relocation assistance in advance, or they will pay the on your behalf so you don’t have to. Always make sure to confirm with your employer so you know whether or not you’ll owe any money to the IRS come tax season. " 

 

We know the relocation money was reported as income on his W2.  We also know that the company/relocation company paid Federal, stae\te, OASDI, and medicare taxes on the relocation amount directly to those entities.  The question is where do I report the taxes that were paid so we can offset the tax on the relocation package?  Those amoutns are NOT on his W2. I have the numbers on a statement listed as tax assistance but no form number or direction of where to report what was paid for him by the relocation company.

VolvoGirl
Level 15

Where do I put the taxes paid on our behalf by an employer on the 1040 to offset the tax we owe on a lump sum relocation package?

The employer should have added them to the boxes on the W2.  What does the employer say?

timconsc-gmail-c
New Member

Where do I put the taxes paid on our behalf by an employer on the 1040 to offset the tax we owe on a lump sum relocation package?

They did not gross up the income.  That is the problem.  If they did that it would be easy. LOL.  They paid the lump sum full amount then had the relocation company pay the tax on that amount for him.  The taxes are not included on his W2. 

ZoltanB45
Level 6

Where do I put the taxes paid on our behalf by an employer on the 1040 to offset the tax we owe on a lump sum relocation package?

Under deductions and credit

  1. go to estimates
  2.  other taxes paid
  3. other income taxes paid
  4. withholding not entered on a w-2
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