Qualifying Moving Expense Reimbursement is No Longer Tax-Free

January 18, 2018

As of January 1st, 2018 any Moving and Relocation Expenses incurred after December 31, 2017 will be reported as taxable income to the State Controller’s Office.

Per Tax Reform Legislation (H.R. 1, P.L. 115-97), Qualified Moving Expense Reimbursement is defined in Section 132(g) as any amount received by an individual from an employer for expenses that would be deductible as moving expenses under Section 217 if paid by the individual.

In accordance with the Tax Cuts and Jobs Act of 2017, Qualifying Moving Expense Reimbursement is no longer a tax-free benefit as of January 1, 2018, with the exception of individuals in the military moving due to military orders.