Employer Paid Relocation Expenses

[newton]

Hello

I'm contemplating a new job.  Part of the officer is a certain amount for relocation expenses.  How does this impact taxes?  For example, if I'm given a check for $10,000 for relocation?

[MDM]

Seems similar to the situation described in https://ttlc.intuit.com/questions/2348716-i-got-a-relocation-lump-sum-amount-of-15000-in-w2-box-1-company-paid-me-8962-50-after-deduct-6037-50-not-in-w2-box-2-for-the-taxes-were-withheld.

Would that apply to you?

[newton]

Thanks for the info.  I'm not 100% sure yet.  All that has been mentioned to me is $10,000 for moving expenses.  We haven't talked further about how they would classify it (as the article states). 

I'm wondering if I will have an option to take the lump sum or an amount after taxes?

[lthenderson]

Generally I have seen moving expenses treated two ways. The employer gives you a lump sum minus withheld taxes up front is one option. The other is that the employer pays for the moving expenses directly which means you never see taxes withheld. The latter give you the most bang for the buck but many companies don't like to get involved in your move directly. I have negotiated moving expenses after tax with a future employer. I figured up that I needed say 10,000 to move and they gave me more so when the taxes were deducted, I ended up with 10,000.