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Returning Member
posted Apr 14, 2021 1:37:42 PM

Overseas Relocation Expenses in 2020 w-2 when relocation happened Sept 2019 and movers were paid Dec 2019

Hello! Trying to get to the bottom on what I should do. I received a 2020 W-2 from a former employer, who I left employment in September of 2019 when I was relocated from overseas back to the states. And was later informed that the third party movers were paid in December 2019. Is this correct? Should those "wages" not be in my 2019 W-2? I would greatly appreciate any information! 

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3 Replies
Expert Alumni
Apr 14, 2021 1:55:33 PM

Because moving expenses are not deductible, they must be included as income if your employer pays for them.  Even though you stopped working in 2019, if they were not included on your 2019 W2 (usually because they did not pay the mover until 2020), you would include the income on your 2020 tax return.  

Returning Member
Apr 14, 2021 2:00:24 PM

Hi! thank you so much for responding. So, when I called my former employer it turns out that they paid the third party movers in Dec 2019. So then should that not be included in my 2019 w-2? And I was still overseas at the time of the move (Sept 2019) so no federal taxes were taken out because at the time it was considered Foreign Earned Income. I never saw this money, my employer paid the third party directly. 

 

Expert Alumni
Apr 14, 2021 2:45:04 PM

It depends. It should have been included in your 2019 return since the movers were paid in 2019 and you completed your move in 2019. Despite the error, you still need to report this on your 2020 return regardless.