Associate Vice President
and University Controller,
Office of the Controller
Certain expenses incurred in moving household goods and personal effects on behalf of a faculty or staff member who has accepted a position with Indiana University, may be paid directly to vendors by the university or reimbursed to the individual on a non-taxable basis. The types of moving and related travel expenses which are eligible for payment or reimbursement will be determined in accordance with IRS guidelines, unless specifically modified by the university elsewhere in this policy statement.
Limitation on Use of University Funds
The reimbursement of eligible moving or travel expenses with university funds is at the discretion of the hiring department, corresponding Responsibility Center, Campus and/or appropriate Vice President, but is limited to no more than $10,000. Amounts in excess of $10,000 may be paid for with IU Foundation funds.
Eligible Moving Expenses
Expenses associated with the transportation of household goods and personal effects from the prior residence to the new residence are considered eligible moving expenses, including the costs of packing, shipping and unloading. Also included is the storage of household goods within any period of 30 consecutive days between the move from the prior residence and arrival at the new residence.
Eligible Travel Expenses
Expenses for travel from the former residence to the new residence are typically eligible for reimbursement as moving expenses. Travel expenses are limited to one trip, one way, per family member. The actual costs of transportation and lodging incurred en route are considered eligible moving expenses. Mileage reimbursement will be made based on IRS guidelines. Note: The mileage reimbursement is typically less than the standard mileage paid for business travel. See the link to IRS Mileage Rates in the Related Information section.
Ineligible Expenses are Taxable Compensation
The following payments made to an in-coming university employee cannot be made as non-taxable payments or reimbursements of moving expenses under IRS guidelines (see Related Information section below). Payments for the following types of expenses will be treated as taxable compensation to the employee and will be included in the employee’s W-2 wages. These expenses must be paid utilizing the Supplemental Payroll Voucher process, which falls outside the scope of the Moving Expense Policy and associated dollar limitations:
Scholarly Equipment and Materials
Expenses incurred for the relocation of a laboratory, library, scholarly collection or research equipment will not be considered household goods or personal effects to the extent that these items are relocated to university premises. These expenses are considered ordinary and necessary business expenses of the university and will not be subject to the stated dollar limitations related to moving expenses. These expenses can be paid directly by the university or reimbursed to the employee under the accountable plan.
Existing Faculty/Staff Moves
Moving expenses for existing faculty or staff who relocate for university purposes may also be reimbursed at the discretion of the hiring department, corresponding Responsibility Center, Campus and/or appropriate Vice President. All reimbursements are subject to the limitations of this policy including the distance limitations.
The move of the residence must meet the minimum IRS distance requirements; the distance from the prior residence to the new job location must be 50 miles more than the distance from the prior residence to the former job location.
Contract and Grant Reporting
IRS Publication 521 details the federal income tax rules and regulations for individuals, in regard to moving expenses. A link to the publication is provided in the Related Information section.
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