The cost of relocating for a job changed with the enactment of the Tax Cuts and Jobs Act (TCJA) of 2017. In years past, employees who were moving for a job could deduct out-of-pocket expenses for travel, storage, insurance, pet care, costs related to selling and buying a home, and more. The TCJA suspends those deductions and more until 2025, and shifts the burden to employees. Any reimbursement you receive for moving is now viewed as taxable income by the IRS.
What can you expect and what should you do if you are facing the prospect of relocation for a new career opportunity?
First, don’t be shy about asking a potential new employer about provisions they might have in place to reduce the impact of this new taxable event. Additional signing bonuses, cost of living adjustments, concierge services to assist with managing aspects of the relocation—are all reasonable to inquire about.
Second, expect to be offered a lump-sum dollar amount for relocation expenses and a directive to “do it yourself.” If this happens, just call WK Real Estate’s Relocation Department. With our connections and expertise, we can help you make the most of your lump-sum payment, and can recommend service providers in all parts of the world to ensure a smoother, less stressful process and quicker assimilation to the new location and job.