Moving and Relocation

To avoid new employee frustration, it is important that all university staff and faculty members understand and consistently apply the rules surrounding the taxability of recruiting and moving expense reimbursements. This involves clear communication to recruits, both verbally and in our offer letters, of the IRS rules, so that we set appropriate expectations throughout the recruiting and hiring process. Please note that the university does not cover moving expenses for all new or transferring employees; paying for such items is entirely at each unit's and human resource's discretion. When the university does agree to pay for these items, they will generally be included in an employee's offer letter.

All reimbursements for moving or relocation costs made to employees or paid directly to third parties on or after January 1, 2018 are included in taxable wages, and subject to all income and employment taxes.

Recruitment vs. Relocation

Any expenses reimbursed or paid on behalf of an individual being recruited are considered recruitment expenses. These expenses are not taxable to the individual being recruited. Once the individual has accepted an offer, they are no longer in recruitment status and, therefore, the expenses are related to moving and relocation.

Moving Expenses

Once an offer has been accepted and in the event that the university pays for the new hire's moving expenses, all relocation and moving expenses paid by the university are taxable wages, including:

• Transportation from the old home to the new home for the new hire and household members
  • If a car is driven, the reduced moving mileage rate must be used.

• Lodging for the new hire and his or her household members
• Packing, crating, shipping, and storage of household goods from the old home intended for the new home
• Costs of shipping household pets, animals, or livestock
• If a car is not driven, the costs of shipping the car from the old home to the new home may be reimbursed
• Lodging/housing on or after the day of arrival at the new work location (e.g., hotels or apartments while waiting for permanent housing to be identified or to become available)
• Any part of the costs of acquiring a home or leasing an apartment (reservation fees, security deposits, down payments, closing costs, brokers fee, mortgage fees, points, etc.)
• Car tags
• Meals during a move
• Driver's license
• Personal expenses associated with obtaining a green card/permanent residency
• Loss on the sale of a home or costs associated with terminating a lease early
• Losses from cancelling memberships or similar items
• Mortgage penalties
• Pre- or post-move house hunting expenses
• Real estate or personal property taxes
• Return trips to the former residence, vacation home, second home, or other similar location
• Costs of moving items from anywhere other than the old primary residence (e.g., car or boat stored at a vacation home)

If you have any questions regarding the specific tax treatment of an expense reimbursement, please contact your unit human resources representative or the Tax office at tax@cornell.edu.