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Taxability of housing allowance for non-minister

I have searched the IRS website and not gotten a definitive answer (shocking right? lol)
We are moving an employee from one company to another (different FEIN's).

His transfer offer states " Company will pay any difference in the cost of a comparable house to what you have now up to $100,000. Company will pay all moving/relocation expenses. Company will rent housing for you while you find permanent housing."

I'm thinking all of the items listed will be taxable income to the employee and must be reported on his W-2. But when I search on the IRS site it only references Minister's housing allowance. Any info/advice would be appreciated! Thanks!


  • CaroleNJ
    CaroleNJ ✭✭✭

    I learned long ago - if's it's not mentioned - it's taxable.

    In you case, this all looks like moving expenses due to relocation. These rules have changed over the years, so please still research, however last I looked, the ONLY non-taxable part of employer reimbursed moving expense is the actual move. The rest is all taxable. Hope it helps, or at least gives you a jumping point.

  • Under the TCJA moving expense reimbursement is no longer excludible from employee income. The general rule is that if there is not a statutory exemption for the item, it is taxable income. There used to be an limited exemption that could be used for some pre and post move expenses, but that was eliminated in (I think) the 1980s.