The IRS provides in Notice 2018-75
that employer reimbursements made after 2017 for qualified moving expenses for a move that occurred prior to 2018 will be excludible from income. This exclusion specifically applies to any amounts directly or indirectly received by an individual in 2018 from an employer for qualified moving expenses that satisfy the requirements of Section 132(g)(1). Under the Tax Cuts and Jobs Act, the exclusion for qualified moving expense reimbursements from income is suspended for taxable years 2018 through 2025 (except for certain moves by active duty members of the armed forces).
For employers that have already included qualified moving expense reimbursements in individuals’ wages for federal employment tax purposes and have withheld and paid federal employment taxes on these amounts, Notice 2018-75 permits employers to use the adjustment process under Section 6413 or the refund claim process under Section 6402 to correct the overpayment of federal employment taxes on these amounts. Practitioners may also refer to Rev. Rul. 2009-39 and IRS Publication 15 (Circular E) for additional guidance on federal employment tax adjustments.
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