Moving Expense Tax Reporting Changes Effective Janaury 1, 2018

Suspension of exclusion for qualified moving expense reimbursements under Tax Reform

  • Under prior law (before 01/01/2018), qualified moving expense reimbursements were excludable from an employee’s gross income and from the employee’s wages for employment tax purposes.
  • Effective January 1, 2018 through December 31, 2025:
    • The new law suspends the exclusion from gross income and wages for qualified moving expense reimbursements for calendar years 2018 through 2025.
    • All moving expenses are considered taxable to the employee and included as taxable income and proper taxes withheld (Federal, State, FICA) based on the W-2 on file with Payroll for individual employees.
    • If actual move happened prior to January 1, 2018 - Tax Compliance Office will apply tax law in effect prior to January 1, 2018.
    • If actual move happened after December 31, 2017 - Tax Compliance Office will apply new tax law effective January 1, 2018.

If you have any questions please contact the Tax Compliance Office at jose.carus@wisc.edu or (608) 262-0582.