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User alert: Moving expense earnings code MVN deactivated
February 8, 2018 by Employee and Information Services
With the passage of Tax Cuts and Job Act of 2017, all moving expenses are now taxable. The law does not allow any portion of moving expenses to be nontaxable, including costs for moving companies or trucks.
With this change, the earnings code MVN has been inactivated. Going forward, please submit all moving expense payments under the code MVT.
Additional policies and procedures related to recent tax law changes are being reviewed by CU system administration and campus leaders. We will update HCM users about any changes as they are approved and implemented.
Comments
I would assume that individuals that could have process some of their moving expenses last year but waiting to include the selling of house, are now subject to these changes. Is that correct?
Hi Kevin,
The change applies to all moving expenses paid in 2018 (when they were incurred does not matter). According to IRS regulations, taxation is based on the date paid, not earned.
If you have any additional questions, please let us know.
Hello--is this for moves that occurred after 1/1/18 when the tax code went into effect or is it dependent on when the reimbursement is paid?
Hi Rebecca,
The change applies to all moving expenses paid in 2018. When the expenses were incurred does not matter. Per IRS regulations, taxation is based on the date paid, not earned.
Please let us know if you have any additional questions.
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