My employer reimbursed me for move in a lump sum amount through payroll and witheld taxes on it like regular income. Do i need to mention it in moving expenses once again

[sanchit-goyal]

The amount was not separated on w2. Turbo tax asks me to mention the employer reimbursement even if not mentioned on w2. Do i mention the amount as reimbursement when turbotax asks in this case ?

[MichaelDC]

More than likely, you do not need to mention it in the moving expense section. However, you may have an entry in a W-2, Box 12, Code P. Code P means "Exclusionary moving expense reimbursements". This amount isn't included in your income in Box 1. If you deduct moving expenses, you can't deduct the expenses for which you've been reimbursed.

For many employer paid moves, employers will reimburse you for all the deductible moving expenses (not included in your income - Code P), plus they will reimburse you for expenses that, according to the IRS, are not deductible. Reimbursements for these may be included in Box 1, Wages. Employers may increase your reimbursement on top of that to make up for the extra taxes you may owe. This is also known as "Gross-Up".

This situation many times leaves taxpayers with no remaining deductible credit and basically, no moving expense reporting necessary.