Taxable Move/Relocation Expenses


Expenses for an employee move/ relocation may be eligible for payment or reimbursement by UC San Diego.  Due to IRS regulations and tax law, such expenses are considered taxable.

Reminder: Not all employees are eligible to be reimbursed for expenses listed here. Refer to Reimbursable Move/ Relocation Expenses for Staff to learn about allowable expenses.

Critical Concepts

Tax withholding, amounts paid for taxable moving expenses, whether or not they are paid directly to an employee, are included in an employee's gross income, subject to withholding of applicable income, social security, and Medicare taxes. Please note, the dept. will see a MV2 DOS entry (taxable move payments made through Travel) on the Concur Chart of Accounts (COA) charged for the employer-related taxes.

Though the nontaxable moving expenses are excludable from the employee's gross income, the IRS requires that the University report such expenses on the employee's Form W-2.

Move/Relocations paid in 2018 or later

Taxability for Moving Expenses

Moving expenses that are reimbursable to certain titles are subject to applicable Federal and FICA taxes.

The Tax Cuts and Jobs Act (P.L. 115-97) signed into law impacts the taxability of moving expense payments and reimbursements provided by an employer. Any expense or amount paid for moving expenses, whether or not they are paid directly to an employee, on or after January 1, 2018 are includible in an employee's gross income subject to applicable federal income tax withholding, social security and Medicare taxes.

Note: State of California has yet to determine if state income taxes will also apply.

Taxability for Relocation Expenses

Relocation expenses that are reimbursable to certain titles are subject to applicable Federal, State, and FICA taxes.

Relocation expenses, when allowable and approved by the authorized authority may include:

Note: If an employee receives reimbursement for an exceptional expense, it is taxable.

Move/Relocations paid in 2017 or earlier

Moving expenses that are taxable and reimbursable to certain titles include:

Note: If you received reimbursement for an expense that is not tax deductible, it is taxable.

Moving expenses that are taxable but NOT reimbursable include:

Additional Information

Questions? See who to contact for additional guidance.

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