Do reimbursements from my employer need to be included in my income?
- October 24, 2018
- David Greene
- Comments Off on Do reimbursements from my employer need to be included in my income?
Under the 2017 Tax Cuts and Jobs Act reimbursements for moving expenses paid by an employer for most employees is to be included in income starting in 2018. This makes these amounts taxable for most employees, except for active-duty members of the U.S. Armed Forces whose moves relate to a military-ordered permanent change of station. However, employer payments or reimbursements in 2018 for employees’ moving expenses incurred prior to 2018 are excluded from the employee’s wages for income and employment tax purposes. To qualify, reimbursements or payments must be for work-related moving expenses that would have been deductible by the employee if the employee had directly paid them prior to Jan. 1, 2018. The employee must not have deducted them in 2017.