Early last month, we discussed how the Tax Cuts and Jobs Act made what we hoped was an inadvertent change to a certain benefit for federal employees. Under previous law, workers who relocated for their jobs were allowed to deduct reimbursements for certain moving and travel expenses using the Withholding Tax Allowance and Relocation Income Tax Allowance computation. The TCJA removed those reimbursements from the computation while leaving the employee's home sales' excludable tax status unchanged.
There is an apparently unforeseen consequence of the Tax Cuts and Jobs Act that affects federal employees who have been reassigned. Under previous law, when federal employees relocated for their jobs they could deduct certain travel and moving expenses. Those deductions seem to have been removed by the new tax law. A coalition of federal employee associations hopes they can be reinstated when the Treasury Department and GSA update policies and regulations to comply with the new law.