Consider This Before Choosing to Do a PCS Move

General Discussion for SMART Scholarship Recipients

Consider This Before Choosing to Do a PCS Move

Postby angryDoDemployee » Thu Feb 14, 2019 5:31 pm

So you're located far from your sponsoring facility and plan to be moving to your new location once you enter Phase 2? Please consider that due to the new tax laws, you will be expected to pay the approx. 30% in taxes for your entire moving expense if you do a PCS move (let the government arrange the move for you). For some shorter distances, this may not be a problem. However, let's say you're moving across the country and your total moving expense through PCS is around $10,000 (pretty reasonable amount since the government will always seem to choose the most expensive method for travel), you can be expected to owe the IRS approx. $3,000 in taxes for that move. Consider the trade-off. If you can afford to move for cheaper on your own, do it. Otherwise be prepared to lay out thousands of dollars in lump sum.
angryDoDemployee
 

Re: Consider This Before Choosing to Do a PCS Move

Postby WaitWhat » Sat Feb 16, 2019 11:59 pm

angryDoDemployee wrote:So you're located far from your sponsoring facility and plan to be moving to your new location once you enter Phase 2? Please consider that due to the new tax laws, you will be expected to pay the approx. 30% in taxes for your entire moving expense if you do a PCS move (let the government arrange the move for you). For some shorter distances, this may not be a problem. However, let's say you're moving across the country and your total moving expense through PCS is around $10,000 (pretty reasonable amount since the government will always seem to choose the most expensive method for travel), you can be expected to owe the IRS approx. $3,000 in taxes for that move. Consider the trade-off. If you can afford to move for cheaper on your own, do it. Otherwise be prepared to lay out thousands of dollars in lump sum.


This is an option?? They pay for it???

I’ve been stressed and saving a bunch of money for my move across country after I graduate. I don’t mind paying the taxes on the move if that means I don’t have to worry about the upfront costs. How do I do this???
WaitWhat
 

Re: Consider This Before Choosing to Do a PCS Move

Postby Guest1234 » Sun Feb 17, 2019 10:22 am

WaitWhat wrote:
angryDoDemployee wrote:So you're located far from your sponsoring facility and plan to be moving to your new location once you enter Phase 2? Please consider that due to the new tax laws, you will be expected to pay the approx. 30% in taxes for your entire moving expense if you do a PCS move (let the government arrange the move for you). For some shorter distances, this may not be a problem. However, let's say you're moving across the country and your total moving expense through PCS is around $10,000 (pretty reasonable amount since the government will always seem to choose the most expensive method for travel), you can be expected to owe the IRS approx. $3,000 in taxes for that move. Consider the trade-off. If you can afford to move for cheaper on your own, do it. Otherwise be prepared to lay out thousands of dollars in lump sum.


This is an option?? They pay for it???

I’ve been stressed and saving a bunch of money for my move across country after I graduate. I don’t mind paying the taxes on the move if that means I don’t have to worry about the upfront costs. How do I do this???


Depends on your facility. Out of the two I have dealt with through the SMART program, neither offered any form of relocation reimbursement or package. I've had to pay to move myself multiple times.
Guest1234
 

Re: Consider This Before Choosing to Do a PCS Move

Postby kbl2017 » Wed Feb 20, 2019 8:04 pm

We were told they won't pay for any relocation now - our base told us it had something to do with SMART saying it's not allowed because we continue getting support stipends even after we graduate? I'm personally not sure why that matters because we still need money to live on.... but that's what we were told.
kbl2017
 
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Re: Consider This Before Choosing to Do a PCS Move

Postby bioephd » Fri Mar 15, 2019 12:12 pm

I just got my reimbursement for the move after months of emails and calls and will add that the taxes were taken directly out of my reimbursement check so I will not be on the hook for it next year at filing time. I would have used movers regardless so even though they didn't end up paying the full amount (because a percentage was taken for taxes), it was worth it for me.
bioephd
 

Re: Consider This Before Choosing to Do a PCS Move

Postby LimitedExperience » Fri Mar 15, 2019 1:25 pm

I didn't get relocation paid for, but a coworker did, and he received reimbursement for the taxes. They reimbursed the move, then after he filed his taxes he submitted what he paid and they reimbursed him for that.
LimitedExperience
 


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