The university may provide a moving allowance for a newly hired faculty or staff member to move from their former residence to their new residence. To be eligible to receive a moving allowance and to comply with the current guidelines published by the Internal Revenue Service (IRS), the move of the residence must meet the minimum IRS distance test of 50 miles from the location of the former residence. For example, if the location of the former main workplace was 3 miles from the employee’s former home, the location of the employee’s new main workplace must be at least 53 miles from the employee’s former home.
In accordance with IRS regulations, the moving allowance will be reported as taxable income and included on the employee's W-2 statement at the end of the year. The IRS also requires applicable taxes to be withheld and reported. The employee may be able to recover the income tax withheld by filing the appropriate IRS forms with their tax return. This recovery is dependent on the IRS regulation in force at the time of the payment. The individual receiving the moving allowance will be responsible for documenting expenses on their federal tax return as required by IRS publication 521 - Moving Expenses. More information regarding this publication can be located at IRS.gov.
Prior to processing a moving allowance for a new employee,
Form T-5 - Moving Expense Allowance Request Form must be completed and submitted to the Treasurer's Office. The form must be approved by a chancellor or vice president, or their designee. The form also will assist departments in calculating the net moving allowance that will be paid to the employee after applicable taxes are withheld. Questions regarding these guidelines should be directed to the Treasurer's Office.
Allowances exceeding $35,000 require advanced approval from the University’s Chief Financial Officer.