Moving is expensive, regardless of the distance or time of year someone relocates. Fortunately, many employers reimburse employees for some or all of their moving expenses. Some relocation expenses are excludable from income taxation, while others are considered extra taxable income by the IRS.
But, which are excludable and which are not? Many employers, wanting to avoid having their HR departments stay current with IRS moving expense rulings, outsource their employee relocations to top professional firms, to administer the review and tracking of taxable and non-taxable expense reimbursements.
Qualified Moving Expenses
Qualified relocation expenses are not included in an employee's income. They are paid directly to the employee or to third parties.