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.
If you are really interested in reading about the moving expenses the best place to look is the IRS
The above is the IRS publication on moving expenses and how to dedust.
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Thank you, XXXXX XXXXX my situation (since company paid me one lump sum), I can claim deductible, correct?
The relocation will be added to your wages so you can use the Form 3903 and show your expenses
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?
If you had legit moving expenses of $40,000 you can claim those
real estate agent commision is not considered as moving cost to be claimed as deductible, right?
that is very unfortunate :)
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.
Use the pub I sent you the link to as you gather all your receipts
I hope our CHAT was helpful
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?
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.
Travel expense for moving would be the actual move of your household to CA
What is the "traveling" that you mentioned above then? The 1 time travel from missouri to california?
can never win :)
Not with that travel unfortunately
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.
I would still suggest you look at IRS pub 521 I sent the you
It is pretty short but covers all about moving and what you can use
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?
Thank you Robin. This is helpful.
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sure. One last question - does the same rule apply to state as well? not sure if California has different rules
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).
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I got it. Thanks again. have a good weekend