Friday, September 28, 2018

Changes to the Moving Expense Tax Deduction


Are you planning a move in the near future? If so, you should know that a new tax reform law passed. This law made changes to the moving expense tax deduction that so many people enjoyed in the past.   


What Changes were Made?
One big change to be aware of is that many things related to your move that were once tax deductible no longer are. You won’t be able to deduct the cost of moving boxes, movers, or a moving van.
The good news, though, is that you can still be reimbursed for your moving expenses by your employer. However, your employer doesn’t have to reimburse you for these expenses, so make sure you know where your employer stands on this issue. Don’t assume anything.

If your employer does pay for your move, that amount will be included on your W-2 and reported as income. However, taxes will not be withheld from that income. Unfortunately, your reimbursement, however, could affect your tax liability, so make sure you are aware of and okay with any changes the money might make to your tax status.

An Exception for Military Personnel
While civilians are subject to the new law, it is important to remember that it does not apply to military personnel who are relocating for their job.

Any active duty military employee can deduct moving expenses if the government does not reimburse them for these expenses.

Also, military employees don’t have to pay taxes on these reimbursements if the move is the result of a  military order.

Getting Help
If you’re not military and are having trouble understanding the new laws, how they might affect you, or other matters related to moving and your taxes, don’t worry. You can work with a professional accountant to ensure your move is handled, tax-wise, in the best possible way.

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