Tax Compliance

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Tips you need to know

Moving Expense Tips

A non-taxable (qualified) moving expense reimbursement is an expense that is not included as income in the employee's paycheck. Thus, the moving expense reimbursement is not taxed. Types of non-taxable expenses are, but not limited to, transportation of household items, some travel expenses to your new home, and lodging. This reimbursement will show up on the employee's W-2 in box 12 as a code P for the year the expenses were reimbursed. This is for informational purposes only.

A taxable (non-qualified) moving expense is an expense that is IRS taxable to the employee. This means that the employee expense reimbursement will be included as income in their paycheck within the calendar year, and will be included on their W-2 for the year the expenses were reimbursed. This expense will show up in boxes 1, 3, and 5 on the W-2. Examples of taxable expenses are, but not limited to, house hunting, meals, pre-move or post-move expenses.

The above mentioned expenses, non-taxable or taxable are only reimbursed to the employee with the appropriate approval and documentation from management. (See Employee Moving Authorization Procedure located on the accounting web page under policies and procedures)

  • A completed Employee Moving Authorization Form, ACG 1.70, with all signatures, including all applicable signatures. (found under forms on tax webpage)
  • A check request made payable to employee (if applicable),
  • A letter of intent stating amount of moving expenses offered as part of your employment, (or a letter from the department head stating that moving expenses were approved and part of your employment. This letter needs to be signed by department head, dated and on UNCW letter head.)
  • The tax department cannot accept letters via email, must have original signatures.
  • Original receipts for expenses incurred during move,
  • Print out from MapQuest showing miles from old home location to new home location
  • PO for moving company if paying moving company directly
  • Copy of IDI or invoice for temporary housing

You will need to submit the appropriate approved documentation mentioned above to the tax department for review and processing.

Moving expenses are charged to account number 929300. This should be noted on the check request along with your fund number.

Temporary housing reimbursement is taxable to the employee.

Mileage from your old home location to your new home location is reimbursable. However, part of the mileage is taxable to the employee. UNCW will reimburse mileage at the 2017 IRS standard mileage rate of 53.5 cents/mile for trips up to 100 miles per day: mileage at 17 cents/mile will be reported as non-taxable, and mileage at 36.5 cents/mile will be reported as taxable to you. For trips in excess of 100 miles per day, the rate of 17 cents/mile will be reimbursed. Mileage at 17 cents/mile will be reported as non-taxable.

All meals reimbursed to employee are taxable to the employee.

Employees who receive moving expense reimbursement during a tax year will receive a breakdown of their moving expenses by December 15th each year with the detail of expenses between taxable and non-taxable.

For additional information regarding moving expenses please refer to the IRS website and review publication 521 or contact the Tax Compliance Office at 910.962.2757.