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zacr222
New Member

I moved from California to Kentucky. My employer paid for my move and grossed-up the amount so I don't have to pay the taxes. Do I need to report it when I file my taxes?

There is a question on the tax form that asks if I was reimbursed by my employer for any moving expenses. My employer paid for movers and gave me a lump sum. My employer also did a "non-cash" pay stub to gross up the amount so that the employer pays the taxes on my behalf. I am wondering if I still need to report the reimbursement if it's already included in Box 1 on my W-2 and taxes were already taken from it.
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2 Replies
RaifH
Expert Alumni

I moved from California to Kentucky. My employer paid for my move and grossed-up the amount so I don't have to pay the taxes. Do I need to report it when I file my taxes?

No, you do not need to report your reimbursement separately since it is included as part of your wages. However, you may get a deduction on both your state returns for any moving costs you paid. Any costs paid directly by your employer would not be deductible, but the costs that you paid would be deductible since they are reported on your W-2. To report these:

  1. Go to Federal > Deductions & Credits > Other Deductions and Credits > Moving Expenses.
  2. Click Add a Move and enter the required information. 
  3. Make sure you only enter expenses that were paid by you even though your employer reimbursed you. Do not enter the movers' expenses since that was paid directly by your employer.
TomD8
Level 15

I moved from California to Kentucky. My employer paid for my move and grossed-up the amount so I don't have to pay the taxes. Do I need to report it when I file my taxes?

The moving expense deduction has been temporarily suspended due to the Tax Cuts and Jobs Act of 2017, unless the move is due to military orders.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

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