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Qualified Moving Expenses
We have an employee who received payment for Qualified Moving Expenses in 2008. We reported those payments on her 2008 W2 in box 12P. She is calling stating that two different tax preparers are telling her that the amount in box 12P has to be added into her earnings and therefore she has to pay taxes on it. I am confused. My understanding of box 12P is for reporting purposes, so that if the employee has qualified moving expenses that are higher than what we paid then they can take the difference as a deduction when they file thier taxes. Am I wrong? (Which is possible as I am not a tax preparer :D )