How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Robin D. Your Own Question

Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 7869
Experience:  15years with H & R Block. Divisional leader, Instructor
14155347
Type Your Tax Question Here...
Robin D. is online now
A new question is answered every 9 seconds

Hi, Im relocating from Missouri to California. My employer

Resolved Question:

Hi,
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!
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.

Robin D. :

Hello and thank you for using Just Answer,
Your sign on bonus will be added to your wages and will be taxed along with those. The withholding will be shown as well so you will receive credit for that amount.
The relocation will also be shown with your wages and you will be allowed to claim your actual expenses for the move when you file your return.
Moving expenses are figured on Form 3903 , Moving Expenses, and deducted as an adjustment to income on Form 1040 . You cannot deduct any moving expenses covered by reimbursements from your employer that are excluded from income. As your relaocation is going to be added to your income you will be allowed to claim the actual expenses.

Robin D. :

If you are really interested in reading about the moving expenses the best place to look is the IRS

Robin D. :

The above is the IRS publication on moving expenses and how to dedust.

Robin D. :

deduct* sorry

Robin D. :

My goal is to give you excellent service. If you are satisfied, please rate me. If you have follow-up questions on this same topic, use the reply box below. To start a new conversation with me on a new topic request me again

Customer:

Thank you, XXXXX XXXXX my situation (since company paid me one lump sum), I can claim deductible, correct?

Robin D. :

Hi

Robin D. :

Yes

Robin D. :

The relocation will be added to your wages so you can use the Form 3903 and show your expenses

Customer:

If my moving expenses are 40k, I can actually claim the 40K to be deductible even though 22950 was for relocation and the rest are sign on bonus?

Robin D. :

If you had legit moving expenses of $40,000 you can claim those

Customer:

real estate agent commision is not considered as moving cost to be claimed as deductible, right?

Robin D. :

Correct

Customer:

that is very unfortunate :)

Robin D. :

Yes :(

Robin D. :

I know

Robin D. :


  • Moving your household goods and personal effects (including in-transit or foreign-move storage expenses), and




  • Traveling (including lodging but not meals) to your new home.



Robin D. :

Use the pub I sent you the link to as you gather all your receipts

Robin D. :

I hope our CHAT was helpful

Customer:

I'm currently travelling - work in california for 2 weeks, then work in st. louis remote for 2 weeks until the family finally move in Nov. The travel and lodging can be claimed?

Robin D. :

That is not the same as moving expense to claim. You would not be allowed your travel expenses as those are more in nature of commuting now because you new job in in CA.

Robin D. :

Travel expense for moving would be the actual move of your household to CA

Customer:

What is the "traveling" that you mentioned above then? The 1 time travel from missouri to california?

Robin D. :

Yes

Customer:

can never win :)

Robin D. :

Not with that travel unfortunately

Robin D. :

If you use your car to take yourself, members of your household, or your personal effects to your new home, you can figure your expenses by deducting either:





  • Your actual expenses, such as the amount you pay for gas and oil for your car, if you keep an accurate record of each expense, or




  • The standard mileage rate of 23 cents per mile.




Robin D. :

I would still suggest you look at IRS pub 521 I sent the you

Robin D. :

It is pretty short but covers all about moving and what you can use

Customer:

At the end of it, my annual income + sign on bonus + relo are all taxed at the tax bracket my "TOTAL INCOME" falls under. (which is going to be higher than 25%) But I can claim eligible moving expenses. Do I get it right?

Robin D. :

Correct

Customer:

Thank you Robin. This is helpful.

Robin D. :

Your positive rating is always thanks enough.


 

Robin D. :

I really enjoyed working with you – please feel free to request me again when you come back to ask another question.

Customer:

sure. One last question - does the same rule apply to state as well? not sure if California has different rules

Robin D. :

Ca would allow the credit but not MO. MO will not because you are leaving. States usually only allow moving when you are coming to there state (they anticipate new tax revenue).

Customer:

got it. thank you. How do I end this and provide my rating?

Robin D. :

Do you see smiley faces?

Customer:

Thank you for your help. I feel better now that I understand it better.

Customer:

Yes, just click on them.

Robin D. :

A good one (please)

Customer:

The "Save & Exit" link is for me to save the the conversation?

Robin D. :

It is saved it is never erased

Robin D. :

always in your My Questions

Robin D. :

when you click excellent it is saved any way

Robin D. :

Let me know if you have difficulty

Customer:

I got it. Thanks again. have a good weekend

Robin D. :

Best wishes

Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 7869
Experience: 15years with H & R Block. Divisional leader, Instructor
Robin D. and 8 other Tax Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
 
 
 
Chat Now With A Tax Professional
Robin D.
Robin D.
7312 Satisfied Customers
15years with H & R Block. Divisional leader, Instructor