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.