Reimbursable Moving Expenses

 

The Tax Cuts and Jobs Act of 2017 (TCJA) eliminated the deduction of moving expenses for tax years 2018 through 2025. Beginning in 2018, the reimbursement of moving expenses is taxable income to the recipient and must be reported on the clergy person's Form W-2. 

 

Which moving expenses are reimbursable?

Clergy can be reimbursed for:

• Moving household goods and personal effects, and

• Travel.

 

Moving household goods and personal effects.

Clergy can be reimbursed for the expenses of moving their household goods and personal effects, including expenses for hauling a trailer, packing, crating, in-transit storage, and insurance. Clergy cannot be reimbursed for moving furniture or other goods you bought on the way from your old home to your new home.

 

Storing and insuring household goods and personal effects.

Clergy can include only the cost of storing and insuring their household goods and personal effects within any period of 30 consecutive days after the day these goods and effects are moved from your former home and before they are delivered to your new home.

 

Travel.

Clergy can be reimbursed for the expenses of traveling (including lodging within certain limitations, but not meals) from their old home to their new home, including car expenses and air fare. This includes only one trip to the new home.

Clergy can be reimbursed for car expenses either:

• The actual out-of-pocket expenses such as the amount paid for gas and oil for the car, if they keep an accurate record of each expense; or

• The standard mileage rate of 17 cents a mile.

They can add parking fees and tolls to the amount claimed under either method. They can't be reimbursed for any part of general repairs, general maintenance, insurance, or depreciation for their car. They can't be reimbursed for any expenses for meals. You can't be reimbursed for the cost of unnecessary side trips or lavish and extravagant lodging.

 

Nondeductible expenses.

Clergy cannot be reimbursed for the following items as moving expenses:

• Any part of the purchase price of your new home.

• Car tags.

• Driver's license.

• Expenses of buying or selling a home (including closing costs, mortgage fees, and points).

• Expenses of entering into or breaking a lease.

• Home improvements to help sell their home.

• Loss on the sale of their home.

• Losses from disposing of memberships in clubs.

• Mortgage penalties.

• Real estate taxes.

• Refitting of carpet and draperies.

• Return trips to their former residence.

• Security deposits (including any given up due to the move).

• Storage charges except those incurred in transit and for foreign moves.