qbteachmt
Level 15

The clarification in the instructions is new, and I believe the restatement for clarity reflects that many people still have it wrong from 2018 forward, when the rule changed, but they did not change their payroll coding.

"Per a transition rule in the new law, reimbursements an employer pays to an employee in 2018 for qualified moving expenses incurred in a prior year aren’t subject to federal income or employment taxes"

"but I believe that amount should already be included in Box 1 as well."

"Should I include the relocation payments on form 1040 as wages/compensation?"

I would confirm the FICA math on that W2, to see if they included it and taxed it or not. You can't report what they didn't report. They might need to address and correct this.

When I taught PR, I always get these types of questions that are obviously hangovers from years ago. I taught it as 1 day class or 2 night classes, and one session that was Tue-Thurs evenings of the same week, that's when the 2011 FICA tax holiday was announced on the Wed in between. When I got to class Thurs evening, I asked who in class had picked up on the change that specifically affected these payroll professionals.

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