If a company gives you relocation expenses, is it taxed?

Michelle asked:


I’m trying to figure out the numbers on a couple of job offers that I have. One offers a nice relocation lump sum, minus applicable taxes. What does that mean – taxes that I have to pay? Should i figure that I won’t see the entire lump sum? What is the tax rate for relocation bonuses? I just want to make sure that I make a smart decision, and don’t end up in the hole over moving expenses – I think that I’ll need every last penny of the amount they offered.

Moving to Alpharetta