I'm relocating from Missouri to California.
My employer paid me $22,950 (as relocation package) + $20,000 (as signon bonus). Both of them are in separate checks than my normal paycheck. Both amounts are being withheld 25% federal tax
and 10+% California state tax
My questions are -
1. Will these 22,950 + 20,000 be taxed differently when I filed taxes next year or will they be included in my total income and taxed at the bracket my income fall under (I'm estimating it at 33%)?
2. Is signon bonus and relocation package considered and taxed differently? My HR said they are both considered supplemental income.
2. When I file tax in April next year, can I still get deductible for moving expenses (i.e. moving cost, travel for the move, etc..)? What I'm trying to understand is - with the money my employer paid me, will all these be taxable at my tax rate or can I actually claim deductible because I used spend them on moving.
Thank you for your help in advance!