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Level 1
February 17, 2021
Solved

W-2 Question

  • February 17, 2021
  • 1 reply
  • 6 views

I was given a relocation allowance for my current job. This allowance is listed on my W-2 in box 12 with code P which identifies said allowance as a moving expense for active military. However, I am not active duty military. Do I need to request a corrected W-2 or can I just add the allowance to my taxable income?

    Best answer by MaryK4

    Yes, you will want to request a corrected W2 because it is important for the IRS to have the correct information.

     

    Under the Tax Cuts and Jobs Act, employers must include moving expense reimbursements in employees’ taxable wages.  If you just add it without the corrected W2, not only will the wages but also the Social Security and Medicare Wages need adjustment.

    1 reply

    MaryK4
    MaryK4Answer
    Level 15
    February 17, 2021

    Yes, you will want to request a corrected W2 because it is important for the IRS to have the correct information.

     

    Under the Tax Cuts and Jobs Act, employers must include moving expense reimbursements in employees’ taxable wages.  If you just add it without the corrected W2, not only will the wages but also the Social Security and Medicare Wages need adjustment.

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