Tax Assistance

Certain relocation expenses are considered taxable income to you, the employee. Y-12 is required to report all relocation payments as compensation with the following exceptions:

• Reasonable and normal expense resulting from household goods shipments
• Up to 30 days of household goods storage while waiting to occupy a residence at the new location
• Reasonable and normal expenses for transportation and lodging for you and eligible dependents from your old work location to new work location (en route expenses)

Y-12 will assist in paying the additional income tax, Federal Income Contributions Act (FICA) tax, and Medicare tax that result from taxable relocation payments, excluding deductible expenses. More information on the FICA and Medicare taxes can be found at Wikipedia and IRS.

The tax assistance provided to you is based solely on your Y-12 annualized salary, tax filing status, and number of W-4 exemptions.

We recommend that you seek guidance from a tax professional for any year in which you receive relocation assistance.