Moving Expenses, reimbursed by employer

[Omega]

Client was provided relocation services to move to new job in a different state. He passes all appropriate tests.

The company paid everything relating to the move. 80K. These include typical "non-taxable" expenses like transportation of household goods as well as "taxable" type of benefits like temporary house / closing costs, etc.

The company split the expenses into 2 categories: grossed up (60K) for the taxable type and not grossed up (20K) for the "non taxable expenses".

They issued 2 checks to the employee: check 1 was [gross 116, taxes 56, net 60]. Check 2 was [gross 20, taxes 6, net 14].

There is no indication in box 12 of his w-2 for a "P."

I've reviewed the rules but am still confused. I believe that there is nothing to do with the 60K items as he was reimbursed via gross up. My question is what to do, if anything, with the amount from the 20 gross check. They withheld taxes so he didn't get the full reimbursement of the expenses he paid for. Or did he? Do I claim the amount of the taxes withheld (6) as 3903 moving exp?

Would appreciate some clarity as I am spinning my wheels on this.

Thanks very much.

[BP.]

Welcome to the forum. Try Pub 521, if you didn't already.

[Omega]

Thanks for the Pub suggestion. I did refer to it, but after reading it several times am no further along. Still confused. Can anyone help with my example?

[BP.]

It looked like Pub 521 Table 2 and the example that follows had some good info for your situation.

Since it sounds like deductible moving expenses were reimbursed to employee via taxable W2 income, the deductible expenses should go onto Form 3903.

[Omega]

Thanks very much. I think I should get the client's final pay stub to confirm that the reimbursement is loaded up in box 1 as there is no indication of any figure in 12 with code P.

[Omega]

I got the pay stub from the client. It does show that within the gross pay, 136 was included for moving expenses. This ties to the 2 gross figures above (116+20). So based on what I've read in Pub 521 and Feduke404's post, I am removing the 20K in expenses via the 3903.

I greatly appreciate the help and suggestions here. Thank you.