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My employer relocation paid for a moving company,

however it rolled into my gross taxable income. Do I claim it? Technically the check they cut went directly to the moving company it never passed through my hands.
    I had the same exact question.  See Table 2 at the top of page 12: http://www.irs.gov/pub/irs-pdf/p521.pdf (claim all allowable expenses and no reimbursements if the entire reimbursement is reported as wages in box 1).  That's my situation and sounds like it's yours, too (check never went through my hands, either).  Hope this helps.
    • Thanks for the link! I am in the same situation and this was very helpful.
    • So in this case where we are fully reimbursed and grossed up.  We do not have to file any additional forms?
    The instructions for Form W-2 include the following:

    "Report moving expenses as follows.
    • · Qualified moving expenses that an employer paid to a third party on behalf of the employee (for example, to a moving company) and services that an employer furnished in kind to an employee are not reported on Form W-2.
    • · Qualified moving expense reimbursements paid directly to an employee by an employer are reported only in box 12 of Form W-2 with code P.
    • · Nonqualified moving expense reimbursements are reported in boxes 1, 3, and 5 (use box 14 if railroad retirement taxes apply) of Form W-2. These amounts are subject to federal income tax withholding and social security and Medicare taxes (or railroad retirement taxes, if applicable)."

    Note that only the 3rd item would be included in taxable wages. The first item would not be shown, and the second would receive special treatment.

    If your employer handled these expenses correctly, then employer payments for items such as shipment of household goods would not be on your Form w-2, reimbursements for non-deductible expenses (such as temporary quarters or residence expenses) would be in Box 1, and reimbursements for deductible expenses such as travel to the new location would be in Box 12. If handled correctly by the employer, Turbotax's interview for Moving Expenses should result in the correct handling of a moving expense deduction.
    • Do we claim it or not if the company cut the check directly to the moving company?
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