Job relocation

[lagal]

What is the name of your state (only U.S. law)? Louisiana
My husband was a subcontractor for a company and they offered to pay for our relocation (July 2008). My husband quit in December. We received the 1099 for 2008 and the relocation expenses were included as his income! Is this legal?

 

[davew128]

Yes. So are the deductions for moving expenses if you qualify.

 

[lagal]

How can we deduct moving expenses if we didn't pay for them? Are they considered a fringe benefit?

 

[Zigner]

How can we deduct moving expenses if we didn't pay for them? Are they considered a fringe benefit?

What did you use the job relocation benefits for?

 

[LdiJ]

How can we deduct moving expenses if we didn't pay for them? Are they considered a fringe benefit?

If they included the moving expenses in his 1099, then you DID pay for them. Its irrelevant that they paid them on your husband's behalf. They are reporting the money they paid as income to him.

 

[lagal]

The company offered to pay for the move and paid the moving company directly. We did not pay any anything out of our pocket. It's my understanding that if they paid the company directly, it should not be reported as income.
Which is correct?

 

[ShyCat]

From IRS Publication 521:

Reimbursements included in income. Your employer must include in your income any reimbursements made (or treated as made) under a nonaccountable plan, even though they are for deductible moving expenses. See Nonaccountable Plans under Types of Reimbursement Plans, earlier. Your employer also must include in your gross income as wages any reimbursements of, or payments for, nondeductible moving expenses. This includes amounts your employer reimbursed you under an accountable plan (explained earlier) for meals, househunting trips, and real estate expenses. It also includes reimbursements that exceed your deductible expenses and that you do not return to your employer.

Publication 521 (2008), Moving Expenses

Apparently your relocation expenses were paid under a "nonaccountable plan".

 

[LdiJ]

From IRS Publication 521:



Publication 521 (2008), Moving Expenses

Apparently your relocation expenses were paid under a "nonaccountable plan".

Which again means that you can and should deduct the expenses on your tax return. You DID pay them.

 

[lagal]

The moving company will not give us the amount since we did not pay it. The company will not reply to phone calls or certified mail.
How do we obtain the information?