Relocation Tax Report - How do I file this in TurboTax properly?

The relocation benefits you received will likely be included in your W-2 income, but how you handle it depends on how your employer processed the payments. Most companies these days add relocation expenses to your W-2 in Box 1 (wages/salary), so you won't need to do anything special in TurboTax - it'll automatically be part of your income. Some employers also break out the relocation amount separately in Box 12 with code P, which helps identify it but doesn't change how it's taxed. If your employer paid any portion directly to third parties (like the moving company), those amounts should still be included in your W-2. If they reimbursed you directly for some expenses, you should have documentation showing whether those were reported to the IRS or not. When you receive your W-2, check if the total wages include your relocation package. If you're not sure, ask your HR or payroll department to confirm how they handled the relocation expenses on your tax forms.

After dealing with a similar relocation package nightmare last year, I found the solution with taxr.ai (https://taxr.ai) for sorting through my relocation documentation. I relocated for work and had about $15,000 in various benefits - temporary housing, moving expenses, and a lump sum payment. My company provided a "Relocation Tax Report" but I had no idea how to properly report it. I uploaded all my relocation paperwork to taxr.ai and it clearly identified which portions were already included in my W-2 and which parts needed additional reporting. It saved me hours of trying to figure out the tax implications of each benefit type. The tool even showed me that my employer had "grossed up" some of my benefits (paid extra to cover the taxes), which I wouldn't have realized otherwise.

Just wanted to follow up about my experience with taxr.ai for my relocation expenses. I ended up using it after my company sent me a confusing 5-page relocation tax report with various expense categories and tax treatments. The service actually saved me from a major headache! Turns out my employer reported most of my relocation benefits on my W-2 correctly, but I had a $3,200 household goods transportation expense that was paid directly to the moving company that wasn't included. The tool flagged this as "third-party payment requiring separate reporting" and showed me exactly where to enter it in TurboTax as "Other Income." Without this, I would have completely missed reporting that amount. Definitely worth it for the peace of mind, especially since this was my first time dealing with relocation benefits on my taxes.

If you're having trouble getting answers about your relocation tax reporting, you might want to try Claimyr (https://claimyr.com). I was in a similar situation last year and couldn't get straight answers from HR or even the relocation company about how to handle everything in TurboTax. I spent weeks trying to call the IRS directly with no luck - constant busy signals or disconnects after waiting on hold forever. I found Claimyr and they got me connected to an actual IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent was able to confirm that I needed to check if the full relocation amount was included in my W-2, and explained how to handle any amounts that weren't included. Totally worth it instead of guessing or waiting until after filing and potentially dealing with notices or amendments later.

I have to eat my words about Claimyr. After my skeptical comment, I decided to try it since I've been trying to reach the IRS for weeks about a similar relocation tax issue. I got connected to an IRS agent in about 45 minutes (which is still WAY faster than my previous attempts). The agent confirmed that my relocation package should be fully included in my W-2, and if any portion wasn't included (like direct payments to moving companies), I would need to report those as "Other Income" in TurboTax. The agent also explained that even though my employer called the document a "Relocation Tax Report," this isn't an actual tax form I need to file - it's just their internal documentation of what they paid. This was the exact clarification I needed and saved me from incorrectly reporting these expenses.

I went through this last year. Check if your employer did a "gross-up" for the relocation expenses. Mine did, and it confused me at first. A gross-up means they gave you extra money to cover the taxes you'll owe on the relocation benefits. For example, if your actual moving expenses were $10,000, they might have given you $13,000 so that after taxes, you'd have enough to cover the $10,000 in expenses. In TurboTax, you don't need to do anything special other than entering your W-2 correctly. If the relocation expenses were grossed up, your W-2 will already include both the relocation benefits AND the additional money they gave you to cover taxes. Your company's relocation tax report should indicate if they did a gross-up calculation.

Has anyone had issues with TurboTax not accepting relocation expenses correctly? Last year I entered my W-2 which included relocation, but TurboTax kept flagging it as "unusually high income" compared to my previous year. I'm worried about using TurboTax again this year for my recent relocation.