Reimbursing moving expenses

Trish

This is a two-part question:

1. Would a reimbursement for moving expenses be reported on a 1099 or a W-2?

2. If the reimbursement were retroactive (expense occurred in 1999 but is being remibursed in 2001) would there be a difference in reporting?

(Indiana)

THANKS!

CuriousG

>This is a two-part question:
>
>1. Would a reimbursement for moving expenses be reported on a 1099 or
>a W-2?
>
>2. If the reimbursement were retroactive (expense occurred in 1999
>but is being remibursed in 2001) would there be a difference in
>reporting?
>
>(Indiana)
>
>THANKS!


Just about every thing you need to know can be found at this website. [url]http://www.irs.gov/forms_pubs/pubs.html[/url] This is the IRS free publications and instructinos download site. You want to download Publication 521 on Moving Expenses. You also may want to grab a copy of Pub 15-B/Employer's Tax Guide to Fring Benefits, and Pub 535 on Business Expenses.

Be careful about the timing of moving expense reimbursements. If you plan to take a business expense deduction for the reimbursement the IRS placing time limits within which the transaction must take place. Also, if you go beyond the prescribed time and dollar limits, you may be required to declare certian ordinarily non-taxable reimbursements as taxable income to the employee.

I would strongly recommend you get with your company's CPA firm to work this out.