Dear Experts,

I had relocated from PA to VA in 2012 when I was offered a new job. My employer had a 3rd party company manage the entire relocation process. Last week I have been given a Annual Tax Reporting Summary Sheet from this third party relocation company.

In this sheet, they show the Total Taxable Expense and the Total Gross Up.
It is my understanding that the relocation benefitis and the associated taxes have already been withheld from my W2 and the Annual Tax Reporting Summary Sheet is only a summary sheet indicating how much taxes I had paid for the relocation benefits. There is a small amount of about $200 that is indicated as Excludable Reportable Expense (No Tax Impact).

Is there anything related to relocation that I should be doing as part of my 2012 taxes or has everything already been reported as part of my W2.

Please help.

Thanks

SD

It seems that the sheet you received is for information purposes only. If the grossed-up relo benefits were paid to you already, and so are included as taxable wages on your W2, then you don't need to do anything except report your federal wages and tax withheld as shown on the W2, per usual practice.

If you paid any expenses out-of-pocket that were not directly reimbursed by the company you may be able to take a deduction. For example payments to the moving company and expense for the trip for you and your family from the old location to the new may be deductible if you paid them yourself and were not directly reimbursed by the company. For example if the relo benefit was a lump sum, and the total amount is included in your W2, then you should look to deduct these expenses. But if instead your mover was paid directly by your employer, or if you submitted relo expense forms that reimbursed you for these expenses, then you cannot deduct them.

Note that if there is a "P" code in the Box 12 of the Form W-2, then you MUST submit Form 3903 showing expenses at least equal to the amount next to the "P" code, or that amount will be added to your taxable wages.