As of September 4, 2018, fourteen (14) states do NOT plan on taxing moving expenses in tax year 2018. Generally speaking, those 14 states will follow previous years’ rules allowing moving expense deductions for van line expenses (HHG) and final move, non-meal, expenses. A total of six (6) states, have already passed laws specifically stating they will not tax moving expenses. These states are:
- AZ, HI, KY, NY, PA, VA
While the other eight (8) other states have not conformed to the new 2018 federal law – meaning they currently allow moving expense deductions – they have not specifically passed any new laws to address how this will be handled in the future. These states are:
- AR, CA, IA*, MA, ME, MN, NJ, SC
*Will conform to federal law in 2019
To maintain compliance and reduce risk, mobility professionals will need to track these changes closely, especially those who gross up taxable relocation expenses for domestic moves.