Legislation has been introduced to address negative tax implications stemming from the recent tax code changes on those employees who travel for and receive relocation reimbursements from CBP.
To address negative tax implications stemming from the recent tax code changes for those CBP employees who are authorized relocation reimbursements under the Federal Travel Regulations after January 1, 2018, NTEU has worked with congressional allies on legislation to alleviate the problem.
The December 2017 tax code changes eliminated the exclusion for reimbursements or in-kind contributions made by employers to defray the cost of moving, including federal agencies. As a result, CBP workers assigned to a new duty station could have funds withheld from their paychecks to cover the new costs of the taxes associated with moving reimbursements (now treated as ordinary income) provided by CBP.
While the General Services Administration (GSA) was recently able to address part of the issue by administrative action, legislative relief is still needed to allow federal employees eligible for agency-provided moving costs to also be eligible for agency-reimbursement for the now required additional federal taxes.
The bipartisan, NTEU-supported Relocation Expense Parity Act, S. 3236, was introduced by Senator Mark Warner (D-VA) and is cosponsored by Senators Collins (R-ME), Kaine (D-VA), Hirono (D-HI) and Van Hollen (D-MD). NTEU will be pushing for this legislation to be moved swiftly given the salary impact on some of our CBP members.