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?

Related Topics:
1 Lawyer Answer
D. Mathew Blackburn
D. Mathew Blackburn
  • 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.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.