2017 breaking lease fee (for relocation) is reimburse caused me get several thousand $less taxreturn

[chliny2016]

Hi All,

Background info: I'm doing my 2017 tax return now (it's extended to Oct 15).

I relocated in 2017 for work, and my employer reimbursed my rent breaking lease fee, and it's tax protected: i.e. my actually break lease fee is $9000, the employer reimbursed me with $9000  and paid $4000 tax on behalf of me; and in 2017 W-2, they counted this total $13000 into my income.

So this makes my total income for 2017 more than $130k, and I find that if my income is less than $130k, I can get several k $ more tax return. So this means that although I get $9000 breaking lease fee reimbursement with tax protection, I get several k $ less tax return.

So my concerns are as below:

1. I asked my employer why they put $13000 into my income, instead of $9000, they said as they paid $13000, so they have to put it as $13000

2. I get several k $ less tax return because of above, meaning the $9000 is not real tax protected

But looks like breaking lease fee can't be claimed to get tax return credit.

So my question is: is there a way to claim this in my 2017 tax return, so I can get more tax return?

Thanks a lot!

Br,

[Carl]

So my question is: is there a way to claim this in my 2017 tax return, so I can get more tax return?

Sorry, but no. Since the reimbursement put your AGI at more than $120K for the year, you automatically lose out on a "LOT" of deductions because of that. Since 2017 is over and done with, you can't go back in time to change that.

[chliny2016]

Thanks a lot!

This is really helpful "Since the reimbursement put your AGI at more than $120K for the year, you automatically lose out on a "LOT" of deductions because of that. ".  But don't quite understand this "Since 2017 is over and done with, you can't go back in time to change that", you meant change what? 

[Carl]

you meant change what? 

Your 2017 income, by giving some of it back.

[chliny2016]

Thanks Carl.

So you mean that my 2017 income can't be change, i.e. ask my employer to report breaking lease fee reimbursement as $9000, and not as $13000? actually I asked them, they insisted that they need to report $13000 into my income.

I mean is there any method that I can get some deduction for tax return, because above breaking lease fee, so I get about $3000 tax return less.

[chliny2016]

Hi Carl,

And would you pls share me from where to download the document (of 2017) which says "if AGI is more than $120K for the year, you automatically lose out on a "LOT" of deductions because of that"? 

Thanks. 

[Carl]

Income is reported in the tax year it is received. Period. End of story. It flat out, no way, no how matters what year that income is for. So for example, if you worked for somebody in 2005 and they agreed to pay you $10,000. If they did not pay you until 2017, then that $10,000 is reportable income on your 2017 tax return. There are no exceptions here. Now you can scream, holler, yell, complain and threaten all you want. But I don't make the tax laws. That's the way it is. If you don't like it, then contact the IRS directly at 1-800-829-1040 or call your state representative in D.C.

[Carl]

st do a google search with the terms "2018 TAX BRACKETS" and see for yourself. Do note that what specific tax bracket you may fall into, depends on your filing status, and your AGI. So if you file single, your tax brackets are lower.