What kinds of moving expense reimbursements or payments are taxable income to an employee?
Author: Alice Gilman
Reimbursements for the following moving-related expenses are taxable and must be included in an employee's income:
- Any part of a purchase price of a new home;
- Car tags and drivers' licenses;
- Sight-seeing trips taken while traveling to the new home;
- Meals eaten while traveling to the new home;
- Expenses related to selling a home, including closing costs, mortgage fees and points;
- Expenses related to entering or breaking a lease, including forfeited security deposits;
- Home improvements to help sell a home;
- The loss on a sale of a home;
- Mortgage penalties;
- Pre-move house hunting expenses;
- Real estate taxes;
- Refitting carpeting and drapes; and
- Return trips to the old home.