Relocation pay not showing in W-2 (yet)

[deepix]

Hi, I'm living in California.

I relocated to CA from another country in December 2010. I got $4K as relocation benefit, out of which they deducted $1.6K and paid the rest to me.

But because I moved to the US in December, my US income for 2010 is very low and so is my tax bracket. Consequently, I can claim refund on this tax paid.

But my company says that they have an October cut-off for W-2's. Because I moved in December, they say they cannot show this info in 2010 W-2. They say they will do so in 2011 W-2.

Is it legal for me to receive income in one year, but file returns in another year? Is it legal for the company to do this?

Please do help me.

Thanks.

 

[Zigner]

Hi, I'm living in California.

I relocated to CA from another country in December 2010. I got $4K as relocation benefit, out of which they deducted $1.6K and paid the rest to me.

But because I moved to the US in December, my US income for 2010 is very low and so is my tax bracket. Consequently, I can claim refund on this tax paid.

But my company says that they have an October cut-off for W-2's. Because I moved in December, they say they cannot show this info in 2010 W-2. They say they will do so in 2011 W-2.

Is it legal for me to receive income in one year, but file returns in another year? Is it legal for the company to do this?

Please do help me.

Thanks.

To be clear...you actually RECEIVED the money in 2010, right? If that is the case then it is required to be included with your 2010 W2.

 

[deepix]

Yes, I did receive the money in 2010, and it has been taxed already at a higher bracket than what I'm eligible for. Just that it's not showing anywhere in W-2. I've read that it should show up in Section 12-P.

 

[LdiJ]

Hi, I'm living in California.

I relocated to CA from another country in December 2010. I got $4K as relocation benefit, out of which they deducted $1.6K and paid the rest to me.

But because I moved to the US in December, my US income for 2010 is very low and so is my tax bracket. Consequently, I can claim refund on this tax paid.

But my company says that they have an October cut-off for W-2's. Because I moved in December, they say they cannot show this info in 2010 W-2. They say they will do so in 2011 W-2.

Is it legal for me to receive income in one year, but file returns in another year? Is it legal for the company to do this?

Please do help me.

Thanks.

I would definitely ask for clarification of the October cut off for W2s. That is seemingly improper. Did you receive any wages after October? Were those wages reflected in your W2?...or was it only the relocation allowance that did not get reflected?

 

[pattytx]

Generally speaking, for fringe benefits such as relocation, an October 31 deadline is fine IF the payments were made directly to the provider (like paying the mover directly) or you received payments in kind, but cash is a different story. Cash is reportable in the year in which it was paid/received. I take it the deduction was for taxes, yes?

http://www.irs.gov/faqs/faq/0,,id=199593,00.html

 

[deepix]

Hi Ldij,

Yes, the W-2 does show my salary for December. It does not show the relocation income, though.

 

[deepix]

Pattytx,

Yes, this was a "Miscellaneous Allowance" for relocation that was paid in cash to me. Before paying me anything, they have deducted taxes at the rate of 33%. But they haven't showed this in my W-2. They claim that the money was paid after October and this was their cut-off date. So they say they will show it in 2011 W-2.

I'm just so confused with all this.

 

[deepix]

Looks like my company is not unique. Here's one more example, this one from Ford:

http://www.at.ford.com/B2B/Public/Pages/TaxesW-2FAQs.aspx

I did not earn that much money. Why are my gross earnings so high?

A possible explanation is that you relocated in the previous year and the relocation expenses were not reported before the end of October, those monies/benefit are included and reported in the next year's W-2.

For example: An employee relocated in 2009, but the relocation expenses were not reported until December, 2009 – the benefit/earnings is carried over to be reported in 2010 and will be included in the 2010 W-2.