How is the relocation assistance fee taxed?

Question

Besides salary, annual bonus, signing bonus, and stocks, I was also offered a relocation fee of approximately $10,000

How is that taxed? at what rate?

Answer 1

Since the Tax Cuts and Jobs Act of 2017, relocation assistance is taxed as ordinary income. 

When you get it in your hot little hand it's usually grossed up, but that doesn't change your tax liability just your withholdings. 

Prior to the 2017 tax changes, you were able to offset the relo assistance with expenses paid (only taxed on what you didn't spend), but that is no longer allowed. 

Answer 2

It's taxed as ordinary income.  All of it.

Answer 3

Good question. I am unsure. If you spend $9300 would that mean you list $700 net in income? I bet Judy would know.

Answer 4

it's not taxed separately. there's a line on the form for you to fill in how much you were given.