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Business and Financial Policies and Procedures

Moving Reimbursements for Faculty, Administrators, and Academic Professional Staff

Units may, when funds are available, reimburse new or transferred permanent, full-time members of the faculty, administrative, or academic professional staff for part of the expense of moving his/her immediate family, household goods, and other personal property. Units may also reimburse the cost of storing household goods, if necessary, for not more than 30 days. The maximum allowable moving expense is $7,500. This amount covers the combined cost of moving and living expenses. Professional books, articles, and equipment (scientific, music, etc.) are not counted as part of the $7,500 limitation.

For campus units, the dean or delegate gives prior approval for any offer to pay moving expenses. For University of Illinois System Offices, the campus OBFS chief business officer or delegate gives prior approval for amounts over the dollar limits.

While your campus Purchasing Division may consult with or advise you, they may not issue University purchase orders for moving the personal goods of employees, except at the Springfield campus.

Moving expenses that can be reimbursed, after pre-approval

The list of what may be reimbursed includes, but is not limited to, the items below:

  • Do-it-yourself moving expenses which may include truck rental, gas/oil expense, and drop-off fees
  • Rental of dolly, hand truck, or furniture pads
  • Packing materials and services
  • Damage insurance for transit of household goods
  • Mileage for one family automobile driven by the employee or a family member by the most direct route
  • Airfare for employee and immediate family members (those living with the employee before and after the move), if it is the most direct method of transportation
  • Meal per diem for the employee and immediate family members (children under age 12 at half-rate) while in transit to campus
  • Temporary storage of household goods, books, or other personal property for not more than 30 days
  • Temporary living expenses (hotel or apartment rental) for not more than 30 days. Regular lodging and per diem limits apply.
  • Travel expenses related to house-hunting trips to the campus area. Regular lodging and per diem limits apply.

Moving expenses that will not be reimbursed

Employees may not claim expenses for:

  • Damage insurance and other expenses related to moving motor homes, campers, trailers, boats, motorcycles, plants, pets, livestock, etc.
  • Living expenses beyond the first 30 days
  • Post office boxes
  • Expenses related to buying or selling a home, including closing costs

Living Expenses

Per diem may be claimed for family members as follows:

  • Full rate for employee and spouse
  • Full rate for dependent children members of household 12 years old and over
  • Half rate for dependent children members of household under 12 years old

Taxability of Moving Expense Reimbursements

Moving expense reimbursements that include travel expenses (lodging, transportation, etc.) for the employee and members of the employee's household and moving of household goods and personal effects qualify as non-taxable by the IRS. However, a portion of the mileage reimbursement may be considered and reported as taxable income. Although each member of the household can only make one non-taxable trip, they are not required to travel together or at the same time. Storage of household goods is not taxable when stored less than 30 days before being delivered to the new residence, stored temporarily while in transit, or stored during an international move. These reimbursements are reported by University Payables to University Payroll and Benefits as a non-taxable fringe benefit and are reported in Box 13 of the employee's W-2 form with a "P" code.

Other expenses, such as pre-move house-hunting trips (unless combined with a bona fide University business trip), temporary living quarters, meals, and real estate expenses, are considered taxable benefits (non-qualified). Storage of household goods is also taxable when the goods are in storage for more than 30 days before being delivered to the new residence, unless they are stored temporarily while in transit or during an international move. These taxable (non-qualified) moving expenses are reported by University Payables to University Payroll and Benefits as a taxable fringe benefit for the appropriate tax to be withheld from the employee's wages. See Section 18.5, Fringe Benefits for additional information.

Request Reimbursement for Employee Moving Expenses
Request Reimbursement for Domestic or International Employee Travel and Business Meals
Request an Exception
Section 18.5, Fringe Benefits

For current mileage reimbursement rates, see Passenger Vehicles

Last Updated: October 18, 2017 | Approved: Senior Associate Vice President for Business and Finance | Effective: September 2012

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