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Per the IRS Employer Update webpage:

Qualified Moving Expenses Reimbursements No Longer Excluded from Employees’ Income, with Two Exceptions

For 2018 through 2025, employers must include moving expense reimbursements in employees’ wages. The new tax law suspends the exclusion for qualified moving expense reimbursements.

Exception 1: Members of the U.S. Armed Forces can still exclude qualified moving expense reimbursements from their income if:

  • They are on active duty
  • They move pursuant to a military order and incident to a permanent change of station
  • The move expenses would qualify as a deduction if the employee didn’t get a reimbursement

Exception 2: Employers may exclude from wages any 2018 reimbursements to or payments on behalf of employees for moving expenses incurred for a move that took place prior to January 1, 2018, and which would have been deductible had they been paid prior to that date. See Notice 2018-75.

Moving expenses are deducted on Form 3903 Moving Expenses.

To enter or edit Form 3903 in TaxAct:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Other Adjustments in the Federal Quick Q&A Topics menu to expand, then click Moving expenses.
  3. Click + Add Form 3903 to create a new copy of the form or click Edit to review a form already created.
  4. Continue with the interview process to enter all of the appropriate information.
  5. On the screen titled Moving Expenses - Armed Forces, click Yes if you are a member of the armed forces on active duty, then proceed with the program interview questions.

Additional Information

For lists of deductible and nondeductible moving expenses, see the IRS Instructions for Form 3903.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.


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