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PCS orders issued in 2018 (Travel claim processed after Oct. 29, 2018)

The Tax Cuts and Jobs Act, or TCJA, of 2017 applies to your PCS.

2018 Travel W-2’s did not report the following taxable entitlements if they were paid to a third party vendor. Third party payments are invoices paid to vendors for taxable moving expenses and counted as income to the traveler. They include:

          *HHG shipment                                 *CONUS Non-Temporary Storage of HHG           

          *Temporary storage of HHG            *Mobile Home Shipment

If a payment was made to a third party vendor in October 2018, a W-2C will be issued. W-2Cs will be mailed in December 2019.

  • If you receive a W-2C from DFAS, you will owe a tax liability to DFAS.
  • Your tax liability will be for Social Security (6.2%) and Medicare (1.45%) taxes only.
  • Federal income taxes owed will be settled with the IRS on your amended return. 
  • After you have filed your amended tax return, you may file a Relocation Income Tax Allowance (RITA) claim. 

If a payment as made to a third party vendor in November and December 2018 will be reported as regular income on the 2019 W-2.

If eligible, you may file a Relocation Income Tax Allowance claim immediately after filing your 2019 Income Tax return. The RITA is designed to reimburse most of the federal and state income tax paid as a result of a PCS transfer. The RITA is taxable.

For instructions on how to file a RITA claim, click here to go to the RITA page.

Still have questions? Check out the Frequently Asked Questions section for more information.

This fact sheet provide additional information on the changes.

Page updated August 4, 2020