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    CA Bound's Avatar
    CA Bound Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 23, 2007, 04:31 PM
    Relocation tax challenge
    My company offered to cover up to $20,000 of my moving expenses. They said it would come out of my paycheck. I assumed they would gross up to cover all costs. However - here's the catch. Grossing up means then need to pay me $27,000 to reach the $14,000 I actually spent (which is over their budget).

    They've since offered to pay me the full $14,000 in my paycheck without taxing it, but then I'm assuming I just get hit with the taxes later.

    My company has not done this before and therefore I need to understand what my possible options are.

    If I take the $14,000 how much should I expect to pay later in taxes? How can I figure this out?
    Thanks!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Feb 24, 2007, 12:11 AM
    The $14,000 will be taxable. Claim the allowable expenses on Form 3903.
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