What requirements must be met for moving expenses to be excluded from an employee's taxable income?

Author: Alice Gilman

Under the tax reform law enacted on December 22, 2017, the income exclusion for qualified moving expenses is suspended and moving expense reimbursements are taxable to employees from January 1, 2018, through December 31, 2025, except for members of the US Armed Forces on active duty and their family members.

However, an employer may reimburse an employee's qualified moving expenses on a tax-free basis so long as the employer grosses-up the reimbursement.