GSA fixes relocation costs tax code change
- By Sherkiya Wedgeworth
- May 15, 2018
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.