GSA fixes relocation costs tax code change

The U.S. Tax Code President Trump signed into law earlier this year excludes reimbursements or in-kind contributions made by employers to defray the cost of moving, and after some pushback from lawmakers, the General Services Administration has come up with a solution.

GSA on May 14 issued a bulletin stating all travel, transportation and relocation expenses that are now taxable retroactively beginning  Jan. 1, 2018.

According to the bulletin, the following reimbursements, direct payments, and indirect payments are now taxable:

-Lodging expenses for en route travel to the new duty station;
- Mileage for using privately-owned vehicle  to travel to the new duty station;
- Transportation using common carrier (e.g., airline) to the new duty station;
- Shipment of household goods;
 - Temporary storage of household goods in transit, as long as the expenses are incurred within 30 calendar days after the day the items are removed from the old residence and before they are delivered to the new residence;
- Shipment of mobile home in lieu of household goods;
 - Extended storage of household goods for assignments outside the continental United States and
- Transportation of a privately-owned vehicle

 “Agencies should update internal relocation policies and reimbursement procedures regarding changes to the tax code documented in this FTR Bulletin,” it states.

Reader comments

Fri, May 25, 2018

Completely insane to OCONUS employees; I have NO choice of carrier for POV shipment, HHG shipment, non-temp storage facility, etc. I’m subject to whatever company govt has contracted with at their bloated cost point. If you’re a FED and you voted for this sideshow I hope you’re loving all this winning. Vote blue in NOV and hope this gets legislated!

Wed, May 16, 2018 Larry Fl

Where did you think the money that the tax cut for corporations and the 1%ers eliminated was coming from. That's right - from YOU. Told ya. Make america SANE again.

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