IRS Allows Exclusion of 2017 Moving Expenses Paid in 2018
On September 21, the IRS announced that employer payments or reimbursements in 2018 for employees’ qualified moving expenses incurred before January 1, 2018, are excluded from the employees’ wages for income and employment tax purposes [IRS Notice 2018-75, 9-21-18].
To qualify, reimbursements or payments must be for work-related moving expenses that would have been deductible by the employee if the employee had directly paid them prior to January 1, 2018. The employee must not have deducted them in 2017.
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