My employer gave me a bonus for moving expenses, but I don't think it's listed on my W-2. How do I know?

[drewhannay]

I received $3,500 from my employer for the purpose of moving. It came through my normal pay stub and was listed as "Bonus" on my pay stub. But my W-2 doesn't have a "P" in Box 12...should I list this $3,500 as an employer reimbursement for moving?

[AmandaR2 · Accepted solution]

Hi Drewhannay,

It sounds like you didn't provide your employer with receipts for your move. Instead they just gave you extra pay for the move. This means, your employer has a non-accountable plan and the amount you received should be included in your Box 1 wages (treated as normal pay). When your employer uses an accountable plan to reimburse employees for actual expenses with receipts, the amounts are reported in W-2 box 12 with P and not included in the employees income (no deduction). 

In this case, you do not need to enter any additional information. However, if you qualify to deduct your actual moving expenses you can (not simply the amount the employer gave you). Let's go over the three requirements the IRS has to qualify for moving expenses. If you meet these requirements you can take the moving expense deduction for your actual expenses you paid. The software will also ask you the applicable questions to make sure you meet these rules as well.

Your move is closely related to the start of work.

Closely related in time. In most cases, you can consider moving expenses incurred within 1 year from the date you first reported to work at the new location as closely related in time to the start of work. It is not necessary that you arrange to work before moving to a new location, as long as you actually go to work in that location.

You meet the distance test

Your move will meet the distance test if your new main job location is at least 50 miles farther from your former home than your old main job location was from your former home. For example, if your old main job location was 3 miles from your former home, your new main job location must be at least 53 miles from that former home. 

You meet the time test (note: there are different rules for the self-employed)

If you are an employee, you must work full time for at least 39 weeks during the first 12 months after you arrive in the general area of your new job location (39-week test). Full-time employment depends on what is usual for your type of work in your area. (not have to be consecutive or for the same employer)

If you would like to refer to a resource on this topic, I've included a link below:

http://www.irs.gov/publications/p521/ar02.html#en_US_2013_publink1000203444

Let me know if you have additional questions. Thank you for choosing TurboTax!

Amanda

[calboy]

I moved last year.My company paid for the moving expense and paid a lump sum amount to me. The lump sum amount is supposed to be   after tax. I dont see anything on w2 for this expense- "P"is not shown under box 12 .The complication is   I received a form from the 3rd party that manages moving for my company .It seems like they have paid for taxes on my behalf, so that   the lump sum amount would be after tax. How do i declare this as an income on my filing. How do i know if the employer has included the moving expenses on the w2