Carnegie Mellon University

Relocation/Moving Expenses FAQs

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.

Reimbursements for relocation should not be submitted for payment until after the employee’s start date. Similarly, payments to third parties on behalf of a newly hired employee should not be paid prior to the new employee’s start date.
No, only CMU employees with non-contingent positions in Workday can receive reimbursements for relocation payments or have payments made to third parties on their behalf.
Moving expenses will be imputed in the employee’s pay in the month after the reimbursement or third party payment is made. If the moving expense is significant, the additional tax withheld from the employee’s pay may be a large portion of the employee’s pay. Please contact the HR Service Center if you have concerns regarding the tax withholding on this imputed income.