Carnegie Mellon University

Relocation/Moving Expenses FAQs

Yes.  Effective January 1, 2018, the payment or reimbursement of an employee’s moving expenses is considered taxable income for the employee (i.e., included in the employee’s pay) and subject to income and employment taxes and required withholdings.  Any expense submitted for reimbursement after January 1, 2018 will be taxable, regardless of when the expense was incurred by the employee. This includes all previously defined “qualified” and “non-qualified” moving/relocation expenses.

State income tax consequences of personal moving expense payments/reimbursements, which depend on the employee’s state of residence and university work location, are still being reviewed.

Yes. As of January 1, 2018, the exclusion from income for the reimbursement of an individual’s moving expenses has been suspended until January 1, 2026. Payment or reimbursement of an employee’s moving expenses is considered taxable income for the employee (i.e., included in the employee’s pay) and subject to income and employment taxes and required withholdings. Any expense amount submitted for reimbursement or payment to a third-party vendor for an employee’s moving expenses after December 31, 2017 will be taxable, regardless of when the expense was incurred by the employee. This includes all previously defined “qualified” moving/relocation expenses and “non-qualified” moving/relocation expenses.

The IRS annually announces the standard mileage rates for business, medical, moving and charitable expenses. The standard mileage rate is different for each category of expenses and typically changes annually. See the standard mileage rates.

OC 81616 - Relocation Federal and State Taxable

It is the department's discretion to determine what types of relocation/moving expenses will be reimbursed or paid on the employee’s behalf.  

It is the department's discretion to determine if there is a dollar limit on the amount of relocation/moving expenses will be paid for or reimbursed.