Reform Guidance - Moving Expense Deductions for Tax Year 2018

On December 22, 2017, President Donald Trump signed Public Law 115-97, commonly referred to as the Tax Cuts and Jobs Act (TCJA), which suspends the federal moving expense deduction for tax years 2018-2025, except for moving expenses incurred by active duty military members who move pursuant to a military order and incident to a permanent change of station.

Iowa, however, did not conform to this limitation for tax year 2018. As a result, moving expenses will be deductible for Iowa purposes in 2018 for any move that would have qualified for the federal deduction prior to its suspension by the federal TCJA. Iowa will conform to the new federal moving expense deduction limitations for tax years beginning on or after January 1, 2019.

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