I handle payroll for a company that does relocation grossups and this is normal. Your W-2 will show the TOTAL - both the $15k you received plus the additional amount the company paid in taxes on your behalf. The full amount is taxable income. Check your last paystub of the year and look at the "YTD" column for federal withholding. It should be higher than normal because of the extra withholding for the relocation. If your company did the gross-up correctly, they would have withheld around 22% federal (supplimental rate) plus Medicare/SS taxes on the full grossed-up amount. If TurboTax is saying you owe more, it might be because your overall tax bracket is higher than 22% so you need to pay the difference.

As a newcomer to this community, I really appreciate all the detailed explanations here! I'm dealing with a similar situation where my employer offered a relocation package, but I haven't accepted the job yet. Reading through these comments, it sounds like the tax implications are pretty complex. For someone who hasn't gone through this before, would you recommend negotiating for the company to handle the relocation expenses directly with vendors instead of giving me a lump sum? Or does it not really matter since either way it ends up being taxable income? Also, are there any questions I should ask HR upfront to make sure I understand exactly how they calculate the gross-up and what will show up on my W-2? I'd rather avoid the confusion that several people here experienced!

One thing nobody has mentioned yet - you should look at the trust document itself. Some trust agreements have specific provisions about accounting and tax filing requirements that might differ from the standard practice. While most revocable trusts with living grantors don't require 1041 filings, there are occasional exceptions. Also worth considering whether the trust owns any unusual assets or has special provisions that might have led the corporate trustee to file separately. For example, if the trust owns an interest in a business, there might be reasons for separate filings.

Just want to add one practical tip - when you take over as trustee for a revocable trust, it's usually a good idea to get an EIN for the trust even if you're not filing 1041s. Many financial institutions require an EIN for trust accounts, and having one doesn't obligate you to file trust tax returns if it's a grantor trust.

I've dealt with this exact same frustration! PayUSATax and Pay1040 customer service is notoriously difficult to reach. Here are a few strategies that have worked for me and others: For PayUSATax: Try their live chat feature on their website during business hours (usually 8am-5pm EST). It's not always available, but when it is, you can sometimes get connected to a real person faster than phone. For Pay1040: Their Facebook page actually responds to messages - I know it sounds weird, but I got a response within 2 days when I messaged them there with my payment details. However, given your timeline urgency with the $5,300 credit and missing 1040-X, I'd strongly recommend calling the IRS directly at 1-800-829-0922 (this is the dedicated line for payment inquiries). Yes, the wait times are brutal, but they can see ALL payments made to your account regardless of which processor was used. They can also help you understand why payments might have been applied to different accounts. Since your husband originally filed as Single and you're trying to amend to Married Filing Jointly, there's a good chance the IRS systems are having trouble matching payments between your individual accounts. The IRS can actually initiate payment traces on their end without you needing the processor details first. The $5,300 credit is likely payments sitting in a "suspense account" waiting to be properly applied once your amended return is processed.

I've been through a similar situation with tracking down payments from multiple processors! Here's what worked for me: For PayUSATax, try calling early morning (around 7:30-8:00 AM EST) - I found their phone system is less congested then and you're more likely to get through to a person. Also, if you have a business account with them, there's sometimes a separate business support line that's faster. For Pay1040, beyond the Facebook messaging that others mentioned, try their LinkedIn company page - they actually respond to professional inquiries there pretty quickly since fewer people think to use it. But honestly, given your timeline and the complexity with the missing 1040-X and mysterious $5,300 credit, I'd skip the payment processors entirely and go straight to the IRS. The key is calling the right number at the right time. Try 1-800-829-1040 (the main line) at exactly 7:00 AM when they open - you'll get through much faster than calling during peak hours. When you do reach the IRS, ask them to do a "payment history inquiry" for both your SSN and your husband's SSN for tax year 2022. They can see everything in real-time, including payments that might be sitting in processing limbo. This will be way more comprehensive than anything the payment processors can tell you. The $5,300 credit is almost certainly related to your missing amended return - payments probably got applied but the IRS doesn't know how to reconcile them without the corrected filing status.

The IRS systems are so ancient they probably running on windows 95 still lololol

Just went through the same thing! My cycle code switched from 04 to 03 about 10 days ago and I was panicking too. But honestly, from what I've learned lurking in these forums, it's usually a good sign that your return is moving through the system. The 03 cycle processes on Wednesdays vs Thursday for 04. I ended up using that taxr.ai tool everyone's been mentioning and it really helped calm my nerves - gave me a clear breakdown of what was happening with my specific situation. Hang in there, the waiting is the worst part but movement is generally positive! 🤞

You can also check your 1099-MISC or other tax documents from H&R Block - they should show any fees or advance amounts that were deducted. If you're still unsure, you can always call H&R Block customer service directly with your account info and they can confirm the advance was paid off. Don't stress too much though - these advances are designed to be automatically deducted from your refund, so if you received money back, you're almost certainly good to go!

Another way to verify is to look at your actual tax return form - specifically Form 1040. On line 22b, it should show the total refund amount you were entitled to. Then compare that to what you actually received in your bank account. The difference should match your advance amount. If the math adds up, you're all good! I learned this the hard way after panicking about the same thing last year 😅