Employer reported Relocation income from previous year in next year W2

[stridder]

Per paystub or per W2?

If W2 is the amount in box 1 the same as the amount in box 16, or is box 16 smaller?

W2 2020 amount in box 1 is SMALLER than the amount in box 16 (most likely due to HSA contribution which is taxable in CA).
Relocation amount is larger than HSA contribution.

 

[stridder]

W2 2020:
Box 1 = Box 16 - HSA contribution (box 12b "W") + $300
Not sure whats $300 is about, but its way way less than relocation amount.

 

[LdiJ]

W2 2020 amount in box 1 is SMALLER than the amount in box 16 (most likely due to HSA contribution which is taxable in CA).
Relocation amount is larger than HSA contribution.

Well, then the W2 appears to be wrong all around.

 

[stridder]

No, perhaps I didn't make it clear. The relocation isn't taxable in CA, so if it was included on the Federal taxable W-2, it would not be for state taxable wages with the state W-2 amount being lower by that amount, at least if done correctly. CA didn't conform to TCJA, so it operates under the old Federal rules when qualified moving expenses were a tax-free reimbursement.

could you please advise what I can read on this?
is there FTB publication?

 

[stridder]

could you please advise what I can read on this?
is there FTB publication?

Still looking for answer to this question. Google doesn't give any relevant publication.
Thank you

 

[LdiJ]

Still looking for answer to this question. Google doesn't give any relevant publication.
Thank you

You really need to consult a local tax pro.

 

[stridder]

You really need to consult a local tax pro.

Right, the thing is I'm not in California anymore and won't be there in foreseeable future.
Local tax pro likely won't know about another state, so cannot help me with box 16 in W2.
Unless I do my homework for CA taxes, it will likely be a waste of money and time.

 

[Zigner]

You don't have to be in California to communicate with a tax pro in California.

 

[LdiJ]

Right, the thing is I'm not in California anymore and won't be there in foreseeable future.
Local tax pro likely won't know about another state, so cannot help me with box 16 in W2.
Unless I do my homework for CA taxes, it will likely be a waste of money and time.

Many tax pros can also help with issues in other states as well. Your problem is that your employer made a really big mess and refuses to clean up their mess. You are not going to be able to force your employer to fix things (at least not without suing them which is even more difficult to do long distance) therefore you need to find a creative way around things. A tax pro is in the best position to help you.

 

[davew9128]

Still looking for answer to this question. Google doesn't give any relevant publication.
Thank you

As a CA tax professional, I don't rely on Google for state level research. I use CA sources. I also don't need to look at a tax publication to know the law, but that's a fundamental difference between being a professional and a lay person. So when I tell you that the HSA contribution from payroll is supposed to be added back for taxable CA wages on the W-2, it's because I really know that's how its supposed to be done.

 

[stridder]

As a CA tax professional, I don't rely on Google for state level research. I use CA sources. I also don't need to look at a tax publication to know the law, but that's a fundamental difference between being a professional and a lay person. So when I tell you that the HSA contribution from payroll is supposed to be added back for taxable CA wages on the W-2, it's because I really know that's how its supposed to be done.

Could you please list CA sources you refer to?
I believe you, the issue is how to enforce it if employer keeps ignoring even IRS letter.
One needs to point to smth in law or FTB publication to file government complaint etc.
I cannot just make 4582 with new numbers by dropping relocation.

 

[stridder]

You don't have to be in California to communicate with a tax pro in California.

Any advise on CA tax pro who works with remote clients?

 

[stridder]

Many tax pros can also help with issues in other states as well. Your problem is that your employer made a really big mess and refuses to clean up their mess. You are not going to be able to force your employer to fix things (at least not without suing them which is even more difficult to do long distance) therefore you need to find a creative way around things. A tax pro is in the best position to help you.

Can't Department of Labor force employer?
I am looking for tax pro who can help with CA taxes.
Not sure whats the plan though?
Say I find tax attorney who tells me what the right numbers for form 4582 should be, than I file form 4582 myself?
This seems to be the only way, if there's no way to force employer to correct W2.

 

[davew9128]

Can't Department of Labor force employer?
I am looking for tax pro who can help with CA taxes.
Not sure whats the plan though?
Say I find tax attorney who tells me what the right numbers for form 4582 should be, than I file form 4582 myself?
This seems to be the only way, if there's no way to force employer to correct W2.

It's not a DOL issue. It's an FTB issue, because its the reporting of wages for income tax. DOL would only be involved for matters involving employee misclassification or labor disputes involving items such as unpaid expense reimbursements.