Printed on: 08/18/2018. Please go to http://policy.umn.edu for the most current version of the Policy or related document.

APPENDIX TO POLICY

Relocation Expenses: Taxable and Non-Taxable

All moving expenses incurred after January 1, 2018 must be reported as taxable.

Moving expenses, if incurred prior to January 1, 2018 and where the reimbursement is issued by February 28, 2018 may be claimed as non-taxable as defined below. 

Non-Taxable Expenses - Qualified

(for expenses incurred in 2017 and reimbursed or paid prior to February 28, 2018)

  • Packing
  • Insuring of household goods for full value
  • Containers
  • Normal appliance disconnect and reconnect
  • Loading
  • One extra pickup and delivery to move an office/lab
  • Hauling
  • Storage of no more than 30 days
  • Unpacking
  • Transportation and lodging (not meals) during move
  • Mileage rate of 18 cents per mile* (effective 01/01/2018)

Transportation may not exceed coach class airfare by the most direct or least expensive route for the employee, spouse, and dependent children or an automobile trip using the current University mileage rate.

*(Where mileage is reimbursed, the IRS will consider only 18 cents per mile as a qualified expense.)

Taxable Expenses – Non-Qualified

  • Mileage in excess of 18 cents per mile with a maximum reimbursement up to the standard business rate of 54.5 cents per mile (effective 01/01/2018)
  • House hunting trips (including meals)
  • Meals consumed while moving or while living in temporary quarters
  • Real Estate expenses (e.g., closing costs)
  • Temporary living (including meals)

Departments needing to limit reimbursements might consider not reimbursing the following expenses:

  • Boats
  • Hot tubs
  • Firewood
  • Satellite discs
  • Campers
  • Pets
  • Playhouses
  • Assembly and disassembly of unusual Items (i.e., utility sheds, swingsets, swimming pools, water beds, etc).

Document Feedback