Whether your boss paid in advance for your move to a new location or you were reimbursed by your employer for moving expenses, you didn’t have to count those qualifying funds as income. ![]() In the former tax code, you could exclude employer relocation assistance from your income. ![]() Employer Relocation Benefits Are Now Taxable There are big changes in the 2018 version of IRS code relating to relocation reimbursement, exclusions, and deductions. The passage of the Tax Cuts and Jobs Act (TCJA) removed the deductions from the code for nearly every private taxpayer. If you plan to move this year, you should know that most of the tax deductions and exemptions for moving-related expenses are no longer yours to claim. If you file your taxes using an online tax provider, you can record your expenses easily.If you’ve ever relocated to a new home for a job, you may have been able to deduct your qualified moving expenses. To compute a moving expense deduction, use Form 3903 and follow the instructions to record it on your income tax return, Form 1040. You can also deduct the cost of shipping your car, disconnecting utilities, and storing your belongings for up to 30 days before they are delivered to your new home in the US.įor active duty military members who are moving to a permanent station outside the US, all the aforementioned expenses are deductible, plus the cost of storage for household goods and personal property for the entire time you're at your new location. The cost of lodging during travel to the new home is also included, but meals and food are not. If you're moving to a location within the US, qualifying expenses include costs of moving household goods and personal property, as well as gas, tolls, and parking if traveling by personal car. The IRS defines "permanent change of station" as a move from your home to your first post of active duty a move from one permanent post of duty to another or a move from the last post of duty to home or a closer location in the US, which typically must occur within one year of ending active duty.Ī spouse or dependent of an imprisoned, deceased, or deserted military member may also qualify to deduct moving expenses.
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