"Tax Assisted" Lump Sum Payment?

Question

I have been offered a relocation package from a company and the incidental 'lump sum' payments are tax assisted. What does this mean?

Thanks

Answer 1

Bostonian gave a complete answer.
Just make sure you KNOW exactly what they are giving you. What, if anything will be your out-of-pocket expenses, and are they going to include this in your wages, on your W-2.
I had a booger of a tax return where a taxpayer had this and it was not clear to him when it was given to him. It was a tax benefit for the employer and no out of pocket for the employee...and no moving expense allowance on taxes.

http://www.irs.gov/publications/p521/ar02.html#d0e1435

good luck

Answer 2

Probably that they are giving you enough extra $$$ to defray any tax liability that would accrue from the payment of the relocation package. I'd wager that they're giving you more than the amount that you'll be likely to be able to deduct for the move; any excess is taxed as ordinary income.