Littleton, CO asked in Contracts and Tax Law for Colorado

Q: Can my company put moving expenses that they paid for into my yearly income for tax purposes?

At the beginning of the year, I accepted a job for a company that offered to relocate me. I moved from San Diego to Denver. They paid for everything: household goods, vehicle transportation, temporary lodging, etc. I did not see a single contract or receipt for any of those expenses. They were paid purely by the hiring company. Recently, everyone that relocated received a "bonus" in the amount that our company paid to relocate us. This bonus was shown completely deducted with a net pay of $0. These bonuses increased our yearly income any where from $5,000 to $25,000. Is our company allowed to put these expenses on us when we didn't pay any of it, especially when our hiring letter says they will pay for those expenses?

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1 Lawyer Answer
D. Mathew Blackburn
D. Mathew Blackburn
Answered
  • Tax Law Lawyer
  • Englewood, CO
  • Licensed in Colorado

A: Yes, under the Tax Cuts and Jobs Act relocation expenses are now taxable to the recipient whether paid on their behalf or given to the employee in cash.

You also cannot deduct these expenses on your personal return unless you fall within a specific military exemption. This all went into effect 1.1.18.

Even though they paid the expenses it's still income to you for tax purposes.

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