I sold my house to move. Employer asked me to stay 2 months, temporary housing reimbursed. Is this taxable to me?

Forum|Forum|1 year ago
June 18, 2024
1 reply
0 views

I would have left my employer earlier, but they asked me to stay as a benefit to them. Why woudl this be taxable to me?

TurboTax Deluxe Online

Best answer by rjs

Yes, the reimbursement is taxable income to you. It should be included in the wages on your W-2 at the end of the year. All payments by an employer to an employee are treated as wages and are taxable, no matter what the reason for the payment is.

(The only exception would be reimbursement of business expenses under an accountable plan, but this does not appear to be that.)

rjsAnswer

Employee

(The only exception would be reimbursement of business expenses under an accountable plan, but this does not appear to be that.)

bbarnett103Author

Thank you for your response. I had already paid my landlord and submitted to my employer for reimbursement. So, because they are putting it through payroll, I am not receiving back what I had paid. I was expecting this to work similar to an expense report reimbursement.

rjs

Employee

I expect that it is not being treated as an expense report reimbursement because the cost of an employee's housing is not an ordinary business expense. I think your employer is handling it correctly.