MOVING EXPENSE REIMBURSEMENTS

Employee reimbursements for moving expenses:

On January 1, 1998 the IRS has made the following changes that affect the reimbursementof moving expenses:

• Form 4782 is no longer required.
• The University is not required to report on an employee's W-2 any qualified moving expense reimbursements paid directly to a third party (i.e. van-lines).

NON-TAXABLE and TAXABLE moving expenses.

• Non-Taxable moving expense reimbursements will not be included as taxable wages, but will be included on the employee's W-2 in box 13.
  
  
• Taxable moving expense reimbursement will be included as taxable wages in box 1 of the employee's W-2.

NON-TAXABLE - moving expenses that are non-taxable must first pass an initial test. The moving expenses are non-taxable if they are closely related to the start of work at a new job location, and they meet both the DISTANCE and TIME tests.

DISTANCE TEST - this is met if the distance between the NEW JOB and the OLD HOME is 50 miles more than the distance between the OLD JOB and the OLD HOME. For example: if old home was 3 miles from the old job, the new job must be 53 miles or more from the old home.

TIME TEST - you must work full-time for at least 39 weeks during the first 12 months after you arrive.

If these tests are met, the expenses are non-taxable if they are tax deductible. The following moving expenses are tax deductible and therefore will not be included in the employee's taxable wages:

• Van-line charges to move from the old location to the new location,
• Lodging expenses for the FINAL trip to the new location,
• Transportation expenses for the FINAL trip to the new location. If travelling by car this includes a reimbursement for actual expenses such as gas and oil, or a reimbursement at the IRS current standard mileage rate. (The rate as of January 2008 is 50.5 cents per mile.)

TAXABLE - taxable reimbursements will be included in the employee's taxable wages, and in box 1 of the employee's W-2. Therefore, all appropriate taxes will be withheld.

Taxable expenses include the following:

• Premove househunting expenses (transportation, lodging, etc.),
• Temporary living expenses,
• MEALS,
• Expenses of buying or selling a home,
• Expenses of getting or breaking a lease,
• Home improvements,
• Losses from selling items or club memberships.
• Mileage reimbursement above 22 cents per mile.

In order to receive reimbursement for moving expenses the employee must follow thecurrent policies for expense reimbursement. Those policies include the submission of theproper expense reimbursement forms, original receipts for all expenses reimbursed, and astatement that the move meets the distance test. Failure to comply with these policieswill result in all reimbursements included as taxable income.

INSTRUCTIONS FOR REQUEST FOR MOVING EXPENSE REIMBURSEMENT:

1. Complete MOVING EXPENSE REIMBURSEMENT form.
2. Complete a CDV and attach moving expense reimbursement form(s) and receipts to support all expenditure reimbursement requests.
3. Be certain to complete the distance test portion of the Moving Expense Reimbursement form. If this section is not completed the entire amount reimbursed will be treated as taxable and included in your W-2 as taxable income for the year.
4. Process the CDV per regular CDV processing procedures. During the processing the expenditures will be reviewed by the Controller's office and classified as taxable or non-taxable according to IRS rules and guidelines. Non-taxable reimbursements will be made via accounts payable, and taxable reimbursements will be processed through payroll, and the appropriate withholdings will be made.

[ Moving Expense Reimbursement Form ]