Uber relocation tax
Hi I've recently signed an offer and it comes with relocation bonus of 12k that's through a relocation company called Altair. (from CA to NY) I want to clarify on what the tax implication of using this relocation reimbursement would be - On the agreement it says "Uber will cover the cost of Altair’ service in addition to the Relocation Budget and Relocation Payments will be grossed-up for taxes". Does that mean the employer is paying for the tax burden? #tax #relocation #uber
No, it will be added to your W2 and you will have to pay taxes.
This is not true if the offer explicitly says it will be "grossed up," which means the recipient will be given a gross amount resulting in them receiving the full 12K after taxes.
Relocation is paid with grossed up so that the net you receive is what agreed on.
Thank you everyone— HR just confirmed that it means no need to worry about the tax as long as I spend within the budget
OP how did you spend the relocation money?
Yes. If you use 12k, technically you owe tax on it, but sounds like Uber will pay the taxes