| Activity: | Moving Expenses Reimbursement | |
| Policy: | Human Resources Employee Relocation Guidelines Fiscal Misconduct, FIN-ACC-30 | |
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| Things To Know: | Please refer to Human Resources Employee Relocation Guidelines for procedures. Updates as of 1/1/2018 CHANGE IN TAXATION – MOVING EXPENSES (New Policy under development and will be linked when final.) The tax laws that went into effect January 1st eliminated moving expenses as a non-taxable item. In the past, qualified moving expenses paid for directly by IU, were considered non-taxable to the employee. The basis for this non-taxation was driven by the fact that the employee, in the absence of the employer paying the expenses directly, was able to claim a moving tax deduction on their personal return. With the new Tax Reform Bill, this provision is now suspended and moving expenses will now be considered taxable income, effective 1/1/2018.Thus, IU will no longer pay moving expenses for employees. This will be negotiated by departments and paid as supplemental or additional pay and be taxed. Moving Expenses – Processing: If the moving expense is - Already promised - Eligible Employee (EE) expenses incurred in 2017, paid in 2018, will be treated as nontaxable until June 30, 2018. - Promised - “in the pipeline”. The account Fiscal Officer should work with their campus budget office to convert to supplemental pay, with gross-up to make EE “whole”. - Not yet promised or paid (2018) – Units must process as supplemental pay through Payroll. Departments may choose to cover the applicable taxes (via gross-up). Use Object Code 5070 Moving Expense. For information on how to request a quote from a moving company and how to move households or offices, please see click Purchasing - Moving and Relocation. See IRS 521: Moving Expenses for tax clarification such as 30 days in transit storage allowed as not taxable; over 30 days is taxable. - Temporary housing reimbursement is taxable. - House hunting trip reimbursement is taxable. Mileage rate is determined by IRS Guidelines. Email taxpayer@iu.edu or call 855-0375 with any tax questions.
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