Table of Contents:
I. Tax Exempt Status
In order to claim exemption from Federal withholding, an individual must meet both of the following:
Last year I had a right to a refund of ALL Federal income tax withheld because I had NO tax liability; AND
This year I expect a refund of ALL Federal income tax withheld because I expect to have NO tax liability.
Employees claiming exemption from Federal tax withholding must complete a new W-4 form by February 15th annually in order to continue claiming exempt. Employees failing to do so will be changed to single with zero withholding allowance. This form may be accessed at www.irs.ustreas.gov.
You may claim exemption from NYS withholding if you meet the following:
You are under age 18, a full-time student under age 25, or over age 65, AND
You had no New York income tax liability for 2001 AND expect none for 2002.
If you meet these conditions, you may file Form IT-2104-E with the Payroll Office. This form may be accessed at www.tax.state.ny.us. This certificate expires on April 30th and a new form must be filed with the Payroll Office annually. Ithaca College is required to revoke this exemption once the date stated on the certificate filed by the employee indicates the employee no longer meets the age requirements for exemption. This revocation will be in the form of a written notice to the employee. The employee will be asked to complete form IT-2104. Failure to do so will result in the filing status being changed to single with zero withholding allowances.
II. Security Name/Number Social Match
The Payroll Office wishes to remind employees that if they have a name change, they must promptly report this to the SSA (Social Security Administration) at 1-800-772-1213 and request an SS-5 (application for social security card. Reporting a name change only to the Human Resources Office will not change SSA records and will cause name and number mismatches to occur each year until SSA is notified.
III. Advanced Earned Income Tax Credit [top]
You may be eligible to receive advance EIC (Earned Income Credit) if you meet the following criteria:
You expect to have at least one qualifying child. If you do not expect to have a qualifying child, you may be eligible for the EIC, but you cannot receive advance EIC payments.
You expect that your 2002 earned income and AGI will each be less than $29,201 ($30,201 if you expect to file a joint return for 2002). Include your spouse’s income if you plan to file a joint return.
You expect to be able to claim the EIC for 2002. To find out if you may be able to claim the EIC, refer to the instructions for 2002 Form W-5. This form may be accessed at www.irs.ustreas.gov.
For further information, contact the Payroll Office or refer to IRS Publication #596.
IV. Moving Expense Reimbursement Policy [top]
Federal Tax Law:
Moving expenses reimbursed by employers must be designated as Qualified or Non-Qualified as defined by the Internal Revenue Service:
Qualified expenses include only the costs of moving household goods and personal effects from the old to the new residence, and, costs associated with travel (including lodging but not meals) from the old to the new residence. While not included in taxable gross income, qualified reimbursements must be reported on federal form W-2 at the end of the calendar year for information purposes.
Non-Qualified moving expenses include the cost of meals, travel (including lodging) for house hunting trips, temporary lodging, and costs associated with residence sale, lease, or purchase.
It is the policy of the College to permit the reimbursement of qualified moving expenses (the College will not reimburse for non-qualified moving expenses):
Local Moves: No moving allowance will be granted for moves within a 50-mile radius of Ithaca.
All reimbursements are to be negotiated by the hiring dean of each individual school. (Any reimbursements above $5,000 must be approved in advance by the Provost and Vice President for Finance and Administration.)
Administrative appointments (Band K and above):
All reimbursements are to be negotiated by the appropriate vice president for administrative appointments.
Moving Expense Reimbursement Procedure:
New employees seeking reimbursement must complete an Ithaca College Summary of Moving Expenses Form and submit it along with complete receipt documentation to the appropriate dean, director, or vice president. The department should attach a copy of the letter of appointment, or contract, which states the maximum level of reimbursement approved, and forward all documentation to Payroll within the Office of Human Resources, Garden Level Peggy Ryan Williams Center. Payroll will include qualified moving expenses in the employee's W2 at year end. A reimbursement check will be issued to the employee through Accounts Payable within 3-5 days of processing the transaction via EZPay or Voucher Authorization Form.
Qualified Moving Expenses:
Inclusions and Exclusions
A. Time and Distance Tests
Federal guidelines prescribe certain time and distance tests which determine whether or not the expenses associated with your move qualify for exclusion from taxable compensation. In general, the change of residence must be closely related in both time and place to start of work at a new job location.
B. Do not include expenses for meals, house hunting trips prior to the actual move, temporary living expenses at new location, costs associated with selling old residence/ending a lease, or purchasing new residence/acquiring new lease.
C. The cost of one trip (one way) per person in the household may be included.
If travel is by car, gas and oil expenses (but not repairs, depreciation, maintenance or insurance) may be claimed. An alternate approach is to claim mileage computed at the prescribe 2011 federal rate of 19 cents per mile. The route taken must be the most direct one.
For more information on what the Internal Revenue Service considers qualified and non-qualified moving expenses, please visit their website at http://www.irs.gov/publications/p521/ar02.html.