Some PCSing civilian workers get tax relief, but others will need new legislation
New guidance on the taxation of moving expenses may come as a relief to some federal workers, but many — including retirees and new hires — are still stuck footing a significant tax bill.
A General Services Administration bulletin submitted last month at the request of Sens. Tim Kaine and Mark Warner — both Virginia Democrats — clarified how employers should withhold taxes on moving expenses under the Tax Cuts and Jobs Act of 2017, which in part redefined civilian employer-paid and reimbursed moving expenses as taxable income.
The GSA bulletin says agencies can now reimburse “substantially all” moving-related tax expenses for civilians who go from one federal job to another through Withholding Tax Allowance and Relocation Income Tax Allowance payments. Those applicable who have already had wages taxed will be reimbursed.
However, permanent-change-of-station expenses for new hires and those leaving federal jobs are not eligible for those allowances.
Read more at: https://www.stripes.com/1.532228