This includes decisions as to how handle gross-ups for state taxes. Those which are subject to possible change later in the year are italicized.Ĭompanies must make decisions as to whether to gross up for moving expenses that are now taxable in 2018. The September ScorecardĪggregating the data above, as of early September 2018, moving expenses remain excludable in 14 states, listed below. None have changed their law since enactment of the TCJA.Ĭonsequently, moving expenses remain deductible/excludable in Mississippi and Pennsylvania, and excludable (but not deductible) in New Jersey. Mississippi, New Jersey, and Pennsylvania do not conform to the Internal Revenue Code except on a selective basis. The other rolling conformity states (and the District of Columbia), in which moving expenses are no longer deductible/excludable as of 2018 are: As of that time, New York had acted to retain the moving expense deduction exclusion, opting out of that part of TCJA. There has been no change to this group since the May report. Treasury Proposes Regulations to Stop Workarounds of State & Local Tax Deduction Limit Rolling Conformity States ![]() However, California, Maine, and South Carolina are actively considering conformity legislation. They are:Ĭonsequently, moving expenses remain excludable in those states. In addition, six static conformity states have not (yet) acted. Hawaii was the only state added to this list since the May report. ![]() However, Iowa’s conformity does not take effect until 2019, so moving expense reimbursements/payments remain excludable from Iowa income in 2018.įour states have updated their conformity in ways that allow the continued excludability of those payments/reimbursements. Ten states have conformed to the disallowance of the moving expense deduction/exclusion (up from six in the May report). ![]() Others adopt the all or part of the federal tax code as of a specific date and must act to update the state conformity date each time the federal law changes (called “static” conformity). Some automatically adopt changes unless the legislature acts to reject them (called “rolling” conformity). States that conform to federal tax law do so in two ways. This article provides a current scorecard. Since that time, other states have acted. Worldwide ERC® also addressed the issue in an article published in the August issue of Mobility Magazine. In May of 2018, Worldwide ERC® published an article detailing how the various states had so far reacted to the suspension of the deduction/exclusion for moving expenses in the Tax Cuts and Jobs Act (TCJA) that took effect on 1 January 2018.
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