Before I moved, I was told my employer will pay for the transportation of my household goods directly to the moving company and I will also receive a lump sum of 11,200 (1,950 tax withheld) to cover other misc expenses. My actual misc expense was about 2,000, so the lump sum covered it well.

Recently, I noticed that my employer put a total of 15,650 relocation income as my earnings, which became part of the box1 in W-2, and withheld 6,400 tax. Even though this 15,650 is different from the figure I was told: 11,200, my guess is that the expense for moving household goods made the difference.

Interestingly, the difference between 15,650 and 11,200 = 4450 is exactly the tax difference 6400-1950 = 4450. I don't know how to explain that though.

Now my question is, assuming the 4,450 is for moving my household goods, can I claim a total of 6,450 (2000+4450) as the moving expense deduction on line 26 of 1040?

Thank you for your help!

First, you need to use Form 3903 to detail your moving expenses.

Second, ASK your employer if he added the payment to the movers as taxable income. If he did, then deduct it on Form 3903. If he did not, ask for a explanation for the excess income.