tpapa59
New Member

Moving expenses incurred in 2018; not reimbursed by employer until 2019 (counts as income). Does not impact Federal, but seems to impact CA state. Do I report in 2018?

1) Moving expenses incurred in 2018; not reimbursed by employer until 2019. Does not impact Federal, but seems to impact California.  Do I count these moving expenses as non-reimbursed for 2018? I have to pay tax on this as income 2019.  If I do count as non-reimbursable 2018, what do I need to do to correct in 2019?


JulieR
Expert Alumni

Deductions & credits

Due to Tax Reform, federal law limits moving expense deductions to members of the Armed Forces on active duty, but, California allows you to deduct work-related moving expenses subject to distance and time requirements. Yes, on the 2018 CA return, you will treat your moving expenses as non-reimbursed.  

Another result of the new tax changes is that moving expenses reimbursed by your employer will be fully taxable and should be included in Box 1 of your 2019 W-2.  There is nothing you need to do to "correct in 2019".

See https://www.irs.gov/newsroom/tax-reform-brings-changes-to-qualified-moving-expenses for more information.