How to attribute moving expense reimbursement on state returns?

Forum|Forum|1 year ago
February 21, 2025
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I moved from Canada to New Jersey for a job in New York. My employer reimbursed $4000 and withheld taxes from the repayment to me.

My employer is located in NY and reported the $4000 as NY state income on my W-2. My employer told me that tax law dictates that box 1 and box 16 on my W-2 need to match, even though New York does not tax moving expense reimbursement. They said that my “true” NYS income when filing is $4000 less than what is reported on my W-2. When I use turbotax to fill my return it automatically pulls box 16 from my W-2. Do I need to reduce this amount by $4000 when filing?

Furthermore, I moved to NJ not NY. So I am under the impression that the $4000 would not be allocated to NYS anyways.

Do I reduce my NYS income by $4000 when filing?

MAK70

You will need to enter the Moving Expenses in the federal section of TurboTax. You will have to enter the expenses to subtract the income from the New York state return. (TurboTax did not change the entry even though the moving expenses are not deductible on the federal return, but it will transfer to the New York return.)