relocation income from my employer in box 1 ???

wrote

Maybe not all of it, but the allowable expenses that they paid on your bahalf, as moving expenses.

You should ask for the details of what was paid so you can properly prepare your returns.

-- Paul Thomas, CPA snipped-for-privacy@bellsouth.net

Because your employer paid a portion of your moving expenses under a non-accountable plan, the payments are included in box 1 of your W-2.You need to file form 3903 and show all deductible moving expenses (including the amount the employer paid that would qualify as deductible moving expenses if paid by you) and no reimbursements(because your reimbursements are already included in your wages). If your employer had been using an accountable plan, he would have included all reimbursed deductible expenses in box 12 of your w-2.

The more likely problem is that you were not reimbursed under a so-called "accountable plan". Amounts paid under a non-accountable plan are reported as wages on line 1 of Form W-2. In such a case, all of the reimbursement is included in your income, and you are left to determine which of your moving expenses, if any, can be deducted. For more information, see IRS Pub. 521, available online in html format at:

First, yes it's income. Second what's deductible (potentially) are the amounts you or your employer on you behalf, paid for move expenses that are allowable. Hope you got receipts! This would be a good year to have your taxes done by someone competent.

Your legitimate moving expenses are deductible on form 3903, as the payments your received from the employer were not reimbursements but treated as additional wages. See the instructions for the above form and Pub 521 for additional information on what moving expenses are deductible.

thank you to all who posted a reply to my question. i really appreciate your feedback and advise. the responses help point me in the right direction, and also allowed me to calm down a bit as i was getting a little nervous on the tax impact of all this. thanks again !!!