The Tax Cuts and Jobs Act that was passed in December 2017 which eliminated the moving deduction. The moving expense deduction disappears from the tax year 2018 through the tax year 2025, but it’s scheduled to come back at that time unless Congress intervenes to eliminate it permanently.
This time frame means that if you moved in 2017 and you qualify, you might still be able to claim the expenses on the tax return you’d file in April 2018.
Any moving benefits paid in 2018 will now be taxable to the employee, regardless of whether the church reimbursed the employee for their out-of-pocket moving expenses or provides the benefit-in-kind (by direct-payment of the moving company or other vendors.
Effective 1/1/18 any and all moving expenses must be reported as W-2 Box 1 taxable wages. There is no more W-2 Box 12 letter “P” code. No more 50 mile test, no more 39 week rule and no more 1 year rule.
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Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
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