Under the Tax Cuts and Jobs Act, employers must include moving expense reimbursements in employees’ taxable wages.
Generally, members of the U.S. Armed Forces can exclude qualified moving reimbursements if:
- They’re on active duty
- They move per a military order and incident to a permanent change of station
- The moving expenses would qualify as a deduction if they didn’t get reimbursement
Employers may exclude any 2018 reimbursements or payments on behalf of employees for a move that took place before January 1, 2018 and would have been deductible had they been paid before that date.