Moving Expense Information and Eligibility Guidelines
Eligibility for Non Taxable Treatment:
New job location is 50 Miles or more farther away from your former home than the old job.
You move within 1 year from the date you first reported to work at the new location.
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Eligibility for Non Taxable Treatment
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New job location is 50 Miles or more farther away from your former home than the old job
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You move within 1 year from the date you first reported to work at the new location
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Taxable vs. Non Taxable Moving Expense
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Once the department and employee have agreed upon reimbursement of moving expense,
a new employee should note that depending on the nature of the expense, it may be non-
taxable or taxable
•
For expenditure that is considered taxable by the IRS, the University will be required to
report and withhold taxes for the employee
•
IRS Publication 521 Moving Expenses should be referred to for additional information
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Helpful Hints for the New Employee
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Receipts are always necessary to substantiated moving expense claims. Employees should
have all receipts
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Meals are always taxable , if reimbursed
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House hunting expenses are always taxable, if reimbursed
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Storage of household goods beyond the initial 30 days is taxable, if reimbursed
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Lodging beyond the last night at the old location and first night at destination is taxable, if
reimbursed
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Tape, boxes and packaging materials are non-taxable expenses
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Helpful Hints for the New Employee Continued
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Mileage reimbursements for moving is partially taxable if the business rate was
reimbursed. There are frequent updates and currently the IRS allows 23 cents per mile for
moving
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The IRS guidelines for the actual moving trip for household members are specific to ONE
(one-way) trip per household member, including the employee. The trip must also be taken
in the MOST DIRECT ROUTE to qualify for non-taxable reimbursement.
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Adequate Accounting
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Your employer needs a statement of expenses and documentation for the receipts as well
as cancelled checks and bills
Reasonable Period of Time
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You should adequately account for your expenses within 60 days after they were paid or
incurred
Additional Information
•
IRS Publication 521 contains additional information beyond what is covered here.
Individuals should consult their tax advisor for specific questions related to deductibility of
moving expenses on their tax return
Information on moving expense eligibility for non-taxable treatment, including distance requirements and time considerations. Details on taxable vs. non-taxable moving expenses, helpful hints for new employees, and guidelines for adequate accounting. IRS Publication 521 is referenced for additional information.
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Presentation Transcript
MOVING EXPENSE INFORMATION http://www.irs.gov
Moving Expense Eligibility for Non Taxable Treatment New job location is 50 Miles or more farther away from your former home than the old job Eligibility for Non Taxable Treatment: New job location is 50 Miles or more farther away from your former home than the old job. You move within 1 year from the date you first reported to work at the new location. You move within 1 year from the date you first reported to work at the new location
Moving Expense Taxable vs. Non Taxable Moving Expense Once the department and employee have agreed upon reimbursement of moving expense, a new employee should note that depending on the nature of the expense, it may be non- taxable or taxable For expenditure that is considered taxable by the IRS, the University will be required to report and withhold taxes for the employee IRS Publication 521 Moving Expenses should be referred to for additional information
Moving Expense Helpful Hints for the New Employee Receipts are always necessary to substantiated moving expense claims. Employees should have all receipts Meals are always taxable , if reimbursed House hunting expenses are always taxable, if reimbursed Storage of household goods beyond the initial 30 days is taxable, if reimbursed Lodging beyond the last night at the old location and first night at destination is taxable, if reimbursed Tape, boxes and packaging materials are non-taxable expenses
Moving Expense Helpful Hints for the New Employee Continued Mileage reimbursements for moving is partially taxable if the business rate was reimbursed. There are frequent updates and currently the IRS allows 23 cents per mile for moving The IRS guidelines for the actual moving trip for household members are specific to ONE (one-way) trip per household member, including the employee. The trip must also be taken in the MOST DIRECT ROUTE to qualify for non-taxable reimbursement.
Moving Expenses Adequate Accounting Your employer needs a statement of expenses and documentation for the receipts as well as cancelled checks and bills Reasonable Period of Time You should adequately account for your expenses within 60 days after they were paid or incurred Additional Information IRS Publication 521 contains additional information beyond what is covered here. Individuals should consult their tax advisor for specific questions related to deductibility of moving expenses on their tax return
