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.