Civilian Relocation Moves – HHG Shipment and Storage Payment

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Civilian Relocation Moves - HHG Shipment and Storage Payment

by ecd5

Oct 9, 2020

Anyone have any idea how much PCS moves are going to cost us? I received an email today from DFAS:

Civilian Relocation Traveler,

You are receiving this notification because DoD records indicate DFAS paid a vendor on your behalf for shipment and/or storage of your household goods (HHG). As you may know, the Tax Cuts and Jobs Act of 2017 (TCJA) made these moving expense payments taxable income for civilian relocation travelers.

In September 2020 DFAS will begin processing a group of HHG shipment and storage payments to calculate the tax withholding owed. The HHG payment made on your behalf is included in this group of payments. DFAS is required to remit certain taxes to the Internal Revenue Service (IRS) on your behalf for the HHG payment. For payments made to vendors in tax years 2018 and 2019, DFAS is required to pay Medicare and Social Security tax. For payments made to vendors in tax year 2020, DFAS is required to pay Medicare, Social Security and Federal i...See MoreAnyone have any idea how much PCS moves are going to cost us? I received an email today from DFAS:

Civilian Relocation Traveler,

You are receiving this notification because DoD records indicate DFAS paid a vendor on your behalf for shipment and/or storage of your household goods (HHG). As you may know, the Tax Cuts and Jobs Act of 2017 (TCJA) made these moving expense payments taxable income for civilian relocation travelers.

In September 2020 DFAS will begin processing a group of HHG shipment and storage payments to calculate the tax withholding owed. The HHG payment made on your behalf is included in this group of payments. DFAS is required to remit certain taxes to the Internal Revenue Service (IRS) on your behalf for the HHG payment. For payments made to vendors in tax years 2018 and 2019, DFAS is required to pay Medicare and Social Security tax. For payments made to vendors in tax year 2020, DFAS is required to pay Medicare, Social Security and Federal income tax. To recoup the funds paid to the IRS on your behalf, DFAS will establish a debt for the taxes paid.

Here is what you can expect:

- You will receive an advice of payment (AOP) notification in myPay when your HHG shipment and/or storage payment is processed. The AOP will reference the Invoice Number(s) and Bill of Lading associated with the vendor payment(s) being taxed. The AOP is for your information and is not an official debt notification.

- Next, DFAS Accounts Receivable will send you an email regarding your debt. The email will be from: dfas.rome.jaa.mbx.civpcsdebt-inquiry@mail.mil. The email is not an official debt notification. Its purpose is to advise you of the debt amount and provide you an opportunity to pay the debt prior to DFAS initiating debt collection procedures.

- DFAS will mail an official debt notification via the U.S. Postal Service to your address of record in January or February of 2021 if you have not already paid your debt in full.

- Regardless of whether your debt is paid or still owing, in January 2021 you will receive a SmartDoc email providing information about tax reporting on the vendor payment(s) and the process for filing a claim for Relocation Income Tax Allowance.

To find more information regarding how the TCJA applies to civilian relocation payments, please visit: https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.dfas.mil%2Ftaxlawchange&data=01%7C01%7CHeather.Snyder%40DODEA.EDU%7Cc48903d46d3a49b83e9e08d86c55c26b%7Cce0f7be2a75548938d702b153371922c%7C0&sdata=iJ7Ys0QmVtJZMvV%2B4eN4P60uHn0XWoJ%2FTQnvbTbOBUs%3D&reserved=0

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IsItFriday? It's mostly junk. But that's just an opinion. No charge.

It's the HHG that comes with a charge. You will have to pay the $3K. (Your guess is as good as mine.)

Take care with all the paperwork. Scan and photocopy everything. The money, or most of it, should get reimbursed sometime in the distant future, but that's only if you can ...See More

Oct 9, 2020

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haha My understanding was that RITA would reimburse substantially all/most of the cost to the teacher (but I don't claim to have followed it that closely since it didn't really affect me).

Oct 9, 2020

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ecd5 Well the strange thing is that I already filed RITA and received that. I'll definitely hold on to all this paperwork in hopes of future reimbursement.

Oct 9, 2020

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ecd5 @IsItFriday? Most of it is actually junk. You know that time period where you are living off your express shipment while waiting for your HHG to arrive? Well that's probably all the stuff we really needed. And now that my HHG have arrived, we've taken numerous loads to Good Will which makes this situation even more annoying. Shoulda coulda woulda.....See More

Oct 9, 2020

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Icanread When did you move? I was offered a job in 2017 but didn't move until 2018, and I am still waiting for the debt collection on the taxes. It's been over 2 1/2 years that I've been waiting. But of course, I don't really want to bring it to HR's attention.

Oct 10, 2020

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