Just went through this last month!!! The way it was explained to me is super simple: 1) company gave me $18k for moving expenses 2) but that $18k is taxable income so I'd lose like $5k to taxes 3) company doesn't want me to lose that $5k, so they ALSO give me enough extra money to cover those taxes 4) but that extra money is ALSO taxable! 5) so they do this calculation that ends up being more than just the taxes on the original amount On my paystub it showed up almost exactly like yours - a big gross up amount and then this weird "offset" that confused the hell out of me. In the end, my tax guy said it's all correct and the company is paying the full freight including all the taxes. Don't worry about it!

This is actually a really common source of confusion! I work in HR and see this question all the time during relocation season. What you're seeing is completely normal and your company is actually doing you a huge favor. Think of it this way: without the gross up, you would have received your relocation reimbursement and then been hit with a massive tax bill at the end of the year. Instead, your company calculated how much extra they needed to pay you so that after all taxes are paid, you're essentially made whole. The $21,950 offset isn't money being taken away from you - it's just the payroll system's way of showing the math behind the gross up calculation. Your company determined they needed to pay you an additional $31,000 total to cover both your relocation costs AND all the associated taxes. Of that $31K, about $22K was specifically the "tax cushion" portion. Come tax time, yes, the full $31K will be reported as taxable income on your W-2, but remember - your company already factored that into their calculation. You should end up in roughly the same tax position as if the relocation never happened, which is the whole point of doing a gross up in the first place.

I'm also with BoA and waiting on a 3/24 DDD! Based on what everyone's sharing here, it sounds like we're definitely waiting until the actual date. I've been checking obsessively too, but I'm going to try to be patient and just check Monday morning. One thing I noticed is that my transcript shows the 846 code with 20240324, so that seems to confirm the exact date. Has anyone else noticed if BoA sends a mobile notification when the deposit hits, or do you have to check the app manually? Trying to figure out if I'll know right away or need to keep checking throughout Monday morning.

I'm with BoA too and have been through this waiting game before! From my experience over the past few years, they are very strict about the DDD - no early deposits like some of the other banks offer. I'd recommend checking your IRS transcript to make sure that 3/24 date is solid (look for the 846 code). If March 24th falls on a weekend, it might actually deposit on the next business day instead. The good news is BoA usually processes these early in the morning once the date hits, typically between midnight and 6am. I know the waiting is torture when you're expecting a refund, but at least with BoA you can count on it being very predictable timing-wise!

just curious - how long ago did u file the injured spouse form?

Ugh I feel your pain! Same situation happened to me last year - filed jointly and got hit with the child support offset. The waiting is the worst part honestly. I ended up using taxr.ai after seeing it mentioned here and it was super helpful for understanding exactly what was happening with my refund. It showed me the breakdown of how much was being taken vs what I'd actually get back. Way better than trying to decode those cryptic transcript codes myself! Hang in there, the money will come eventually 🤞

One strategy that helped me deal with AMT from ISOs: If you're expecting to be in AMT for several consecutive years, consider exercising and holding ISOs in the HIGHEST AMT year, then doing disqualifying dispositions (immediately selling) in other years. This maximizes the value of your AMT credits when you can finally use them. For your specific question about TurboTax vs TaxSlayer - I've used both, and TurboTax Premier definitely does support Form 8801, it's just not obvious. TaxSlayer's interface makes it a bit easier to find the AMT credit forms in my experience. Also don't forget that keeping perfect records is crucial. Document every ISO transaction, your basis calculations, and keep copies of all AMT-related forms (6251, 8801) from every year. You might need these records for a decade or more until you finally use all your credits!

This is such a helpful thread! I'm dealing with a similar ISO/AMT situation but have an additional complication - I moved states between tax years. Does anyone know how state AMT credits work when you relocate? I paid AMT in California last year due to ISO exercises, but now I'm a Texas resident (no state income tax). Will I still be able to claim the California AMT credit if I exercise more ISOs this year as a Texas resident? Or do I need to file something special with California to maintain those credits? The federal AMT credit carryforward seems straightforward based on everyone's advice here, but I'm completely lost on the state piece. My CPA moved to a different firm and I haven't been able to get clear guidance on this.

Has anyone used TurboTax for a situation like this? I moved from Michigan to Ohio in August and I'm wondering if it's worth paying for TurboTax Deluxe to handle the multiple state returns or if I should just go to a tax professional this year?

I went through this exact situation when I moved from Texas to California mid-year. You definitely cannot just file in one state - each state wants their share of taxes for the period you were a resident there. Even though it seems like extra paperwork, filing as a part-year resident in both states is the only legitimate option. The good news is that most tax software makes this pretty straightforward these days. You'll need to determine your residency dates for each state (sounds like you have clear move dates) and allocate your income accordingly. Since you worked remotely, you'll owe Nebraska taxes on income earned while living there from January through early June, and Colorado taxes on income earned from June onward. Don't try to skip filing in Nebraska - state tax authorities are pretty good at cross-referencing federal returns and W-2 information. It's better to deal with the minor hassle now than face penalties and interest later.