Taxes on Temporary Housing
November 9, 2007 10:02 AM Subscribe
Question related to taxes on paid relocation expenses.
I joined a company in San Francisco in October and they paid for my moving expenses and temporary housing in a furnished apartment for 2 months.
The total taxable amount for temporary housing is about $7000. The tax rate (including Federal, State, etc) is 42.96%. That works out to about $3000.
So far, so good. I was aware that I would be taxed and taxed at this rate and that isn't a problem.
However, I got an email from the payroll manager today saying that they would have to deduct the taxes from the remaining three checks of this year (we are paid bi-weekly.) That is 1000 bucks each check.
My question is this: Is there any way such that the $7000 is reflected on my W-2 but I pay the taxes on that amount when I file my return next year?
I asked the payroll manager and he said no, the taxes had to be paid before the end of the year and they had to come out of the next three paychecks. He said that he could defer it by one paycheck at the most but that the total tax due would have to be paid before the end of the year.
Is this correct, or do I have other options?
Thank you for your time and help!