In box 12, code P we have $63,213. This is the amount paid by the employer for moving related expenses directly to vendors. Will we in turn be taxed on on this?

[sberner]

The amount in question was for taking care of our home in our home state and the loss that company took when they sold the home after paying us MORE for it than they were able to sell it for.

[SweetieJean]

P—Excludable moving expense reimbursements paid directly to a
member of the U.S. Armed Forces (not included in box 1, 3, or 5)

[SweetieJean]

You mention "employer" and "company," but code P relates to Armed Forces Personnel.

[SweetieJean]

Is this for 2017?

[DoninGA]

That is for tax year 2018.
For tax year 2017 -Code P—Excludable moving expense
reimbursements paid directly to employee. Show the
total moving expense reimbursements that you paid
directly to your employee for qualified (deductible) moving
expenses

[SweetieJean]

Right, I realized that after I posted.

[Opus 17]

For 2017, that is not taxable income and should not be included as part of your box 1 wages.

It is not year clear to me if that changed for 2018, but this seems to be a W-2 you already have, so no problem.

[SweetieJean]

This is from the 2018 W-2 on the IRS website:
P—Excludable moving expense reimbursements paid directly to a
member of the U.S. Armed Forces (not included in box 1, 3, or 5)

[TaxGuyBill]

The program will add that amount to your taxable income UNTIL you go into the Moving Expenses section and enter the amount of QUALIFIED Moving Expenses that were actually paid.

[sberner]

So, the employer, who is a Federal entity, keeps saying that this should not be happening and the line that was corrected on the W2 is named "MOVING ALLOWANCE NT" (NT=nontaxable) and they all keep saying we should not be being taxed on this amount.  In addition, all of our friends who have used this exact program did NOT get taxed on the amount of this service.  Does anyone have any advice on where to go from here?  We're SO lost and feel as though we've exhausted all avenues to get this taken care of as were 99% sure we do not owe this money.  Everything that was a benefit that would be taxable to us was "grossed up" to help cover the additional tax burden, but this was not because we should not be being taxed on it. PLEASE HELP!

[sberner]

BTW - This is for 2017 and the 2018 tax changes regarding moving expenses do not apply.

[TaxGuyBill]

As I said before, you need to tell the program that you spent that amount in moving expenses.  Until you do, the program treats it as taxable.

[SweetieJean]

Suspension of exclusion for qualified moving expense reimbursements. 

The Tax Cuts and Jobs Act (Public Law 115-97) temporarily suspends the exclusion for qualified moving expense reimbursements under section 132(a)(6) and (g). However, the exclusion still applies for a member of the Armed Forces of the United States on active duty who moves under a military order to a permanent change of station. This change is effective for taxable years beginning after December 31, 2017, and before January 1, 2026. See P.L. 115-97, section 11048 and Code P—Excludable moving expense reimbursements paid directly to a member of the U.S. Armed Forces for more information

https://www.irs.gov/pub/irs-pdf/iw2w3.pdf

[Opus 17]

Thanks.  I knew the moving expense deduction was eliminated, but I wasn't sure about direct reimbursement to an employee under an accountable plan.  That is indeed suspended for 2018, except for military.

[SweetieJean]

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