Market Overview

The Moving Expense Deduction: The Good News – It's Simplified. The Bad News – It's Gone


Wolters Kluwer Tax & Accounting Discusses Repeal of the Moving
Expense Deduction

Wolters Kluwer Tax & Accounting:

What: As the end of summer typically marks a time when families
rush to move into their new homes before the school year begins,
taxpayers are reminded that the Tax Cuts & Jobs Act repealed the moving
expense deduction for all except Armed Forces members.

Why: Taxpayers should understand that the loss of the moving
expense deduction could have an impact on the relocation decisions of
individuals and their employers. Among the changes to note:

  • The repeal applies for the years 2018 through 2025
  • The exclusion for qualified moving expenses reimbursed by your
    employer is suspended for 2018 through 2025
  • The deduction and the exclusion remain in effect for Armed Forces
    personnel on active duty who move pursuant to a military order
    incident to a permanent change of station
  • Employers will now be responsible for withholding and FICA taxes
    related to reimbursed moving expenses now being taxed as wages
  • The deduction for unreimbursed employee business expenses has been
    repealed as well, eliminating that possible alternative

Who: Tax expert Mark Luscombe, JD, LL.M, CPA, Principal Federal
Tax Analyst at Wolters Kluwer Tax & Accounting, is available to discuss
the repeal of the moving expense deduction in more detail.

Contact: To arrange interviews with Mark Luscombe or other
federal and state tax experts from Wolters Kluwer Tax & Accounting on
this or any other tax-related topics, please contact:

347-931-1055 847-267-2046


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