reclassify tax year for moving reimbursement

[stevenhjxu]

Hi I got reimbursed of my moving expenses from my employer in Jan 2022, which showed up in my pay stub, but my actual move happened in 2021, can I report the moving expense reimbursement as part of 2021 income?

[LenaH]

No. Since you received the reimbursement in 2022, it must be reported for tax year 2022. You cannot report it for the 2021 tax year. The amount your employer pays in relocation expenses, whether directly on or the employee’s behalf, will be added to your W-2 for the 2022.

In addition, the moving expense deduction has been suspended for tax years 2018 through 2025 because of the Tax Cuts and Jobs Act that was signed into law in late December of 2017. Before the suspension, full-time employees who worked at least 39 weeks during the first 12 months at their new job location could deduct moving expenses that were paid within one year of the date they first reported to work at their new workplace, provided the distance between their old home and new workplace was at least 50 miles further than it was from the old workplace.

[stevenhjxu]

Thank you!