Getting jipped?
Okay, just want to see what the BBs are doing with regards to incoming NYC analysts. Are flights being covered for you guys, or is my non-BB bank just being cheap (like it usually is)?
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My BB is covering almost everything including flight + housing. You are definitely being screwed - which bank is this?
u want the gig, then the perks, then u compare, then u get pissed, then u want a better gig... welcome to this side of the world!
The signing bonus they gave you is supposed to be for the inbound flight and housing....
Not necessarily true...Bonus is to help for a security deposit but you should be able to expense your transport to the city as a relocation expense.
Also if you are not working in NYC just training in NYC they should cover your housing.
If they dont cover transport/training its pretty absurd...Im working for a non-"elite" botique/non-BB and getting both covered
Banks cover your flight and housing during the training period (around 7 weeks) IF you work in a regional office. For those that are going to be working in NYC, for example, where training is held, the relocation bonus is intended to cover those expenses.
sign-on bonus is an incentive for you to stay with them as long as it takes them to make their money back on your training. I.e. if you want to skip on them before that period is over, you would have to consider whether the better opportunity is better by enough for you to have to pay back either the entire or pro-rated sign-on bonus. Most often it is not.
Relocation bonus/assistance is to cover the relocation-related expenses. Relocation bonus is also not taxed. If your bonus is taxed, then your relocation expenses are tax-deductible. If HR is silly enough to call your taxed bonus "relocation", then you can collect it, quit the next day, and not have to pay it back.
No. Banks don't pay airfare or help with housing for FT. I got -0- help other than a signing bonus.
Moving expenses are a for-AGI deduction regardless of what kind of a check you get. You absolutely get to deduct the cost of renting the U-Haul trailer, even if you take a standard deduction. Unused rent, apartment search costs, and other stuff gets sketchier. But you absolutely get to deduct moving costs including mileage if you're moving more than 50 miles.
I would check with a lawyer before assuming you get to keep a check called "relocation expense" without caveat if you leave. My check said that too, but a friend in the same program who got into a PhD program three weeks after he was hired had to return the money. Just be careful and remember that Wall Street is smaller than you think.
Illini, you can't deduct if you get a tax-free relocation bonus. Just like you cannot claim tax deduction for medical expenses that already got reimbursed to you through FSA
http://www.irs.gov/publications/p521/ar02.html#en_US_2010_publink100020…
If you tried to deduct the entire relocation bonus- or failed to recognize boatloads of income, expect a note from the IRS in a year or two asking you to revise your old tax return or justify the deductions.
The moving expense deduction is a really nice deduction in that it reduces your AGI and it comes on top of the standard deduction (most first-year employees won't be able to itemize, so this is really special.)
IIRC, I deducted:
-The cost of renting the U-haul trailer. - ~800 miles at 15 cents/mile between Champaign and NYC. - $20 in tolls -A $40 hotel stay in PA.
This worked out to a small fraction of my "relocation bonus", but it was still helpful at tax time.
The easiest way to look at it is to ignore ALL nomenclature. Call the bonus a "signing" or "relocation" bonus, it doesn't matter. All wages go towards your annual gross income. Note that "reimbursement" does not count towards your annual gross income.
From your annual gross income, you're permitted to deduct NON REIMBURSED relocation expenses if your move fits the criteria. To fit the criteria, the distance from your current location to your new job must be 50 miles greater than the distance from your current location to your prior job.
Summary: Annual Gross Income less non-reimbursed relocation expenses equals taxable income.
Why am I NOT surprised you stayed in the vacant room at the Bates Motel?!? LOL.
Regards
It was $45, but I found a $5 off coupon for it. :D
@ Compbanker: Just for the record, the moving expenses are a for AGI deduction. So wages (including "relocation bonus") minus moving expenses=AGI
AGI minus standard deduction minus exemption=taxable income.
IP, granted it's been a while since I got an intern relocation assistance, but I remember it to be untaxed.
But yeah, if u pay taxes - deduct.
Another good deduction is medical mileage. If u have to see an out of town doc, u get to deduct airfare/miles and hotel.
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