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I moved this past year for a new job, and my employer paid my moving expenses. The money was paid directly to the moving company. I just recieved a 1099-misc form for the amount paid to the moving company. Is this amount considered taxable income? How should this be handled for tax purposes?
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I moved this past year for a new job, and my employer paid my moving expenses. The money was paid directly to the moving company. I just recieved a 1099-misc form for the amount paid to the moving company. Is this amount considered taxable income? How should this be handled for tax purposes?

I'd suggest you get a copy of IRS Publication 521, digest the section on employer reimbursements, and then take it to your employer and show them the error of their ways. A 1099-MISC is never appropriate for moving expense reimbursement by an employer. You might also want to pick up the instructions for Form W-2, where you would find that the employer should have shown this nontaxable reimbursement in box 13 with a code "P."

If you can't get your employer to recall the 1099, report it on line 21 and do a Form 3903 to deduct the moving expense on line 26. Actually, if the only thing the employer paid was the mover, you probably have some other deductible expenses, which you'll also include on the 3903.

Phil Marti
VITA Volunteer
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I moved this past year for a new job, and my employer paid my moving expenses. The money was paid directly to the moving company. I just recieved a 1099-misc form for the amount paid to the moving company. Is this amount considered taxable income? How should this be handled for tax purposes?

The only reason you should have received a 1099 from your employer for moving expenses they paid is if what they paid for included:

1. Non-deductible expenses, such as meals, expense of buying or selling your house, real estate taxes, car registrations, etc.
2. The expenses were paid under a nonaccountable plan. A nonaccountable plan is one in which BOTH "adequate accounting" and "return of excess reimbursement" is not required by the employer.

However, because you did not receive a reimbursement (your employer paid the expense directly to the moving company), I don't see any reason why they should have issued you a 1099 -- it appears to have been issued in error. Perhaps other tax professionals on this board can enlighten me if I am missing something here.

CPAScott
(who doesn't think he's missing anything)
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