Faculty and Staff

Taxable Move/ Transfer Expenses

Last updated September 24, 2009 1:31:49 PM PDT
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Find out which moving or transfer expenses are taxable.

Expenses for a move or transfer may be eligible for payment or reimbursement by UCSD. But, due to IRS regulations, certain expenses are considered taxable.

Moving expenses that are taxable and reimbursable include:

  • Any expense that fails an IRS requirement, such as:
    • The expense must be in connection with beginning work at a new job location and incurred within one year from the start of the new job.
    • During the 12 months immediately following the move, the employee must be employed full-time for at least 39 weeks.
    • The new job location must be at least 50 miles farther from the employee’s former principle residence than the former job.
  • Pre-move house hunting, including:
    • Travel
    • Meals
    • Lodging
  • Meals and lodging while occupying temporary quarters in the San Diego area
  • Meals associated with the final move to the new residence
  • Expenses associated with the new locations such as:
    • Automobile registration
    • Driver's license fees
    • Refitting of carpets and draperies
    • Connecting utilities
  • Mileage reimbursement in excess of the current rate
  • Rental automobile cost incurred while the primary auto is being shipped to the new location
  • Storage charges, except those incurred in transit and for foreign moves
  • Return trip to your former residence

  • Note: If you received reimbursement for an expense that is not tax deductible, it is taxable.

Moving expenses that are taxable but NOT reimbursable include:

  • Qualified residence sale, purchase, and lease expenses, including:
    • Home improvements
    • Disconnecting utilities
    • Mortgage penalties
    • Real estate taxes
    • Breaking a lease
    • Security deposits
  • Loss on the sale of a home
  • Any part of the purchase price of a new home or other costs associated with its acquisition
  • Real estate taxes

Tax withholding is determined by the current rate, and the appropriate FICA rate by the employee's appointment. The gross amount of the payment and withholdings will be included on the W-2 in the year in which payment is made.

Need an expert? Contact Chrissy Smith at (858) 534-8419.

Notice: UC Policy and Regulations (PDF) is the source for UCSD travel policy. Published UCSD policy is decisive as it has been adapted to UCSD's organization, delegation of authority, terminology, chart of accounts.

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