Moved from CA to HI for work, employer included a "tax gross up" payment on relocation payout sheet but never paid it to me. This 'payout' amount has however, been added to line 1 of W2 earnings so now I owe tax on it! Money I never saw! Is this righ

Forum|Forum|1 year ago
April 3, 2025
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Moved from CA to HI for work, employer did a Benefit in Kind payout to cover my move (which I received). They also listed a "tax gross up" payment (9k) on relocation payout sheet but never paid it to me. This 'payout' amount has however, been added to line 1 of W2 earnings so now I owe tax on it! Money I never saw! Is this right? So now it looks like on my W2 I received 9k more from my employer than I did & I now have a 9k tax bill.

Shouldn't my employer have given me a "non-cash" pay stub? Or some form of payout of this 9k to pay my tax gross-up as they outlined in the payment plan? Or subtract it from line 1 of my W2?

ThomasM125

Yes, if you didn't receive the $9,000 in cash or benefits, then the W-2 form is wrong. You should insist your employer issue you a corrected W-2 form.

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