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In 06/2018 I moved from west to east coast, staying with my employer. Today (08/19) my employer wants to reimburse my moving expenses (incl travel). Is that possible?

Its been over 1 year since the move and my employer wants to reimburse me for the moving company, mileage driven for my car and home office expenses. I want to make sure that the reimbursement is IRS approved and there wont be any issues. Thank you.

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4 Replies
rjs
Level 15
Level 15

In 06/2018 I moved from west to east coast, staying with my employer. Today (08/19) my employer wants to reimburse my moving expenses (incl travel). Is that possible?

Your employer can pay additional money to you at any time, for any reason. But under the new tax law there is no deduction for moving expenses, and no exclusion for employer-paid moving expenses, for 2018 through 2025. Whatever your employer reimburses you for the moving expenses will be additional taxable income, the same as if he paid you a bonus.

In 06/2018 I moved from west to east coast, staying with my employer. Today (08/19) my employer wants to reimburse my moving expenses (incl travel). Is that possible?

Oh wow, ok. So, it would be taxed on my end no matter what.  Does that include the miles driven to my new destination? What expenses outside of moving could an employer reimburse me for?

In 06/2018 I moved from west to east coast, staying with my employer. Today (08/19) my employer wants to reimburse my moving expenses (incl travel). Is that possible?

There is no limits as to what the employer can give you a bonus for ... and it is better to pay the tax on say $10K of expenses then actually pay out the $10K ... so enjoy the bosses generosity.
Carl
Level 15

In 06/2018 I moved from west to east coast, staying with my employer. Today (08/19) my employer wants to reimburse my moving expenses (incl travel). Is that possible?

Starting with the 2018 tax year, W-2 job related expenses are not longer deductible. So if your employer is going to reimburse you, it doesn't matter if he's reimbursing you for a move you made 50 years ago. The income is taxable income to you.
I don't see an issue with this really. If my employer want's to reimburse me say for example, the $5000 it cost me to move from west coast to east coast, I don't have a problem with paying the IRS $700 of that money and putting the remaining $4300 in my wallet. Besides, if the move was after Jan 1st 2018 it wasn't tax deductible anyway.

If the move was before Jan 1, 2018 then you deducted your moving expenses on the 2017 or earlier return. Now that you're being reimbursed for those expenses, that negates the deduction and you have to pay taxes on it now, in the tax year you are paid/reimbursed that money.

 

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