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Tax Deductions
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Re: Relocation Allowance Tax Question

Eagerly awaiting a reply to the below...
Thanks so much!


I'm about to sign a contract and was able to negotiate a relocation allowance of $7000, paid as a "bonus." As far as I'm aware, my moving expenses are tax deductible (they meet the mileage requirements). Are these expenses tax deductible regardless of income level?

Also, would it be better for me to pay for the move myself and then get reimbursed separately from my salary (essentially, tax free) rather than take the $7000 as a bonus. Or can I take the bonus as is, get taxed, but deduct the expenses when I file. What is the best option tax-wise? Thanks so much.

Confused MD

Zip Code: 10028