Civilian Relocation PCS Tax Changes
The Tax Cuts and Jobs Act of 2017 made most civilian permanent change of station entitlements taxable.
The TCJA does not affect travel allowances received prior to Jan. 1, 2018. To learn more about the background behind this change, click here.
How the TCJA will affect you depends on when your PCS orders were issued. Select from the two categories below to see specific information for your situation and get the most updated information.
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 payments paid to vendors for taxable moving expenses and counted as income to the traveler. They include:
- HHG shipment - CONUS Non-temporary storage
For 2018 travelers, if a payment was made to a third party vendor from January - October 2018, a W-2C will be issued. W-2Cs will be released prior to the end of 2019.
Payments made to third party vendors in November and December 2018 will be reported as regular income on the Travel 2019 W-2. (Per IRS Publication 15-B)
The following is a list of all taxable PCS entitlements. These pages link to additional information about each entitlement.
- En route travel, lodging, meals and transportation including individually billed account/personally procured airfare, government-issued airline tickets-commercially billed account, privately owned vehicle mileage, tolls, taxis, etc.
- All House Hunting Trip (HHT) expenses, including Government Procured Airfare and per diem
- All Temporary Quarters Subsistence Expenses, or TQSE including lodging and meals
- All real estate expenses
- Non-temporary household goods storage (CONUS)
- Temporary HHG Storage
- Miscellaneous Expense Allowance
- Relocation services (i.e., Home Marketing Incentive Payments, Property Management, etc.)
- Withholding Tax Allowance
- Relocation Income Tax Allowance
- Household Goods Shipment (HHG)
- Privately Owned Vehicle (POV) Shipment (CONUS)
- Mobile Home Transportation
State and local taxes are not withheld, so you should consult with your local tax advisor to determine if your PCS wages are taxable under your current state and local government laws and regulations.
Get Help with the Costs of Taxable Entitlements
Need to talk to someone? Please contact the Customer Care Center at 1-888-332-7366, options 1 then 1, or contact us by email at DFAS-CIVREL-Questionsonly@mail.mil for any additional questions.
For employees located overseas, you may contact the Customer Care Center via DSN 312-699-8030 or 312-699-0300 between the hours of 7:30 a.m. and 5 p.m. EST.
Please note, the information on these pages is intended for DFAS Travel Pay customers. If you are not sure if this includes you, click here for a listing of DFAS civilian PCS travel customers.
Page updated September 10, 2019