HRP Moving Expenses Reimbursement Policy Overview HRP will reimburse relocating residents up to $1,950 for actual moving expenses. Cost of travel to Hawaii is for resident and lawful dependents only (e.g. legal spouse, legal children, etc.) To qualify for this reimbursement, a resident must be moving more than 50 miles and must not have been employed by Hawaii Residency Programs, Inc. during the previous 12 months. Requests for reimbursement and receipts must be submitted no later than 150 days from the date of hire. Policies and procedures governing the reimbursement of moving expenses will be determined using the IRS accountable expense plan. Itemized Receipts Itemized receipts and airline boarding passes must be submitted to be eligible for reimbursement. HRP will reimburse for the cost of coach air fare; the individual is responsible for the expense of any upgrades. A copy of the employee’s airline ticket must be submitted with other expense documents as proof of travel. “E-tickets” are acceptable as evidence of ticketing. A valid receipt is an original document from the vendor showing detailed itemization and proof of payment. The following are examples of valid receipts: itemized statements accompanied by a canceled check or credit card slip; itemized bills marked “paid”, dated and signed or showing a $0 balance; ground shuttle or taxi receipts showing amount paid, to/from destination and date of travel; travel agent’s invoice showing $0 balance or last page of airline ticket; itemized cash register receipts indicating place of business and date of purchase; or signed itemized receipts on vendor letterhead indicating amount paid and date received. Deductible Expenses The IRS defines “deductible expenses” as the reasonable expenses associated with moving household goods and personal effects. Deductible expenses include the cost of travel (including lodging but not meals) from the former home to the new home**. The resident is required to provide the program with original receipts of deductible moving expenses in order to receive the reimbursement. Residents should refer to IRS Publication 521 “Moving Expenses” available on-line for a list of deductible moving expenses. Click Here for a direct link to IRS Publication 521 Non-deductible Expenses The IRS has identified certain expenses as “nondeductible expenses” and HRP will not reimburse for nondeductible expenses. For example, the cost of meals and temporary living expenses are not deductible. In addition, only actual expenses are deductible. For example, there is no reimbursement for the use of a free airline ticket. The resident should refer to IRS Publication 521 “Moving Expenses” for a list of nondeductible expenses. Procedure Resident submits required documentation to program personnel including original receipts of deductible moving expenses. Please utilize the HRP Moving Reimbursement Form and worksheet. Click Here This PDF is form-fillable. Program personnel copies the receipts and returns the originals to the resident. Copies of receipts are submitted to the HRP Finance Department with request for moving expense reimbursement. HRP issues a check to the resident for all deductible expenses, up to $1,950 maximum. No taxes will be deducted. HRP will issue a W-2 in January reflecting the payment of moving expense reimbursement to the resident. The reimbursement will not be included as wages and will be reported in Box 13 of the W-2 form for informational purposes only. For additional questions, the resident should contact a tax advisor. ** The price of a round-trip ticket to Hawaii is often less expensive than a one-way ticket. According to the IRS, only 50% of the round trip airfare is considered a deductible moving expense, while 100% of a one way ticket is deductible. Therefore, only 50% of your round trip airfare will be eligible for HRP’s moving reimbursement. Please keep this in mind when purchasing your airline ticket.