Hi. My name is ***** ***** I will be happy to help you.
Relocation bonus is part of the total compensation
so you will have to claim it is income
. However you may be able to deduct moving expenses
. To deduct moving expenses you will need to meet certain tests:
1. To move has to be related to your new job, meaning you had a job offer before you moved
2. Distance test: your new main job location is at least 50 miles farther from your former home than your old main job location was from your former home.
3. Time test: If you are an employee, you must work full time for at least 39 weeks during the first 12 months after you arrive in the general area of your new job location (39-week test).
Usually, if you are permanently relocating more than 50+X (current commuting) miles you can deduct your moving expenses. Here are expenses that are deductible
and here are expenses you CANNOT deduct:
Any part of the purchase price of your new home.
Expenses of buying or selling a home (including closing costs, mortgage fees, and points).
Expenses of entering into or breaking a lease.
Home improvements to help sell your home.
Loss on the sale of your home.
Losses from disposing of memberships in clubs.
Pre-move househunting expenses.Real estate taxes
Refitting of carpet and draperies.Return
trips to your former residence.
Security deposits (including any given up due to the move).
Storage charges except those incurred in transit and for foreign
I am assuming your new employer will not reimburse you for any other relocation expenses, beside the relocation bonus.
IRS publication 521 is a good source for more information: http://www.irs.gov/publications/p521/ar02.html#en_US_2014_publink1000203509
Let me know if you have any questions.