In a situation where you start a job:
- $30k taxable relocation benefits
- $18k tax grossup (FICA/federal/state income tax)
- Relocation owed back decreases 1/24 monthly until 2 years pass
- Relocation all paid out in 2020
- Start date of 1/1/2020
I am assuming that if you have a tax grossup and leave, that is considered part of the relocation paid by the company for purposes of paying reloc back. What I do not understand are the tax implications for relocation payback in these types of scenarios:
- Leave 2/1/2020 (So have vested 1/24th of the total relocation amount)
- Leave 1/1/2021 (vesting 1/2 total amount)
If it matters, the pay back would happen in 2020/2021 respectively.
How would these scenarios impact your taxes?