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Qualified Moving Expenses

I understand that all moving expenses are taxable under federal rule and many of the states. However, as I recently learned that there are some states that have not adopted this change for the qualified moving expenses. My question is how would we handle this on a W-2. I know Box 12 Code P provides for any qualified moving expenses. Since it is taxable on the federal level, do we not report this at all or does it need to be included on the state copy. Any input would be much appreciated.



  • Unless I am missing something I would say read the rules for specific state(s) and follow them. The state in theory could have a box 14 requirement for non-taxable moving expenses. Or something else. How could you tell what the rules are for the state without actually reading them? 50 states means maybe 50 different sets of rules for this.

  • We have been researching NY, which will still allow the exemption for qualified moving expenses. We have yet to find how NY wants the Relo for the state to be reported. Box 14 is our option for now.
    Keep in mind all 2017 relocation expenses paid/reimbursed to the employee are still non-taxable for Federal purposes. These amount would continue to be reported in Box 12P.
    If you find an answer for how states which are not going to follow the Federal rule want relo reported, hoping you will share your findings. I will do the same. Am taking the APA YE webinars this month, hopefully this issue will be addressed.

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