Tax Cuts and Jobs Act (TCJA) 2017

January 11, 2018

Harvard is now performing its due diligence on the effects of the tax reform bill passed in December 2017. While more information is forthcoming, we wanted to share now the changes highlighted:

  • Effective 1/1/2018, Permanent Relocation Expenses For Employees Are Now Taxable

Effective 1/1/2018, all payments to staff and faculty for permanent relocation (moving) expenses must be treated as taxable income. Earnings code MOV/MVI - Moving Qualified (ee, 3rd party), which uses object code 6220, has been disabled. Reimbursements to new employees (individuals or 3rd parties such as moving companies, etc.) must use earnings code MVN/MV3 – Moving Non-Qualified (ee, 3rd party). Schools and units may gross-up these payments at their discretion.