Taxable Relocation Expenses

Can my employer tax me for temporary housing expenses and per diems for relocation? (Federal, Social Security, and Medicare.)

I am a law school graduate. What I offer is mere information, not to be construed as forming an attorney client relationship.


http://www.irs.gov/search/index.html

I am not an attorney and not a CPA


simply put, yes. It is income to you. Believe me when I say that if they COULD get away without taxing it they would. It costs them much more in tax dollars than it costs you.

Employer reimbursements

If the reimbursements were under an accountable plan, then they would not be income to you and the employer would should not withhold taxes. However, if the reimbursements were not under an accountable plan, then they are income to you, they are treated as salary, and the employer must withhold tax.

However, if it is treated as income to you, you can deduct the expenses of moving, etc. as an employee business expense.

What do you define as an accountable plan in relation to taxable relocation expenses?