The Tax Cuts and Jobs Act, passed in December 2017, eliminated the moving expense deduction for civilian employees. For tax years 2018 through 2025, many moving benefits paid to DoD civilian employees and contractors are now taxable, regardless of whether the employer reimbursed the employee for their out-of-pocket moving expenses or paid the expenses directly. However according to recent guidance from the Armed Forces Tax Counsel, allowances received for household goods shipments and storage and Privately Owned Vehicle (POV) shipments to and from assignments outside the Continental United States (OCONUS) are not taxable income. For more information, visit the U.S. Army website.
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