Can You Write Off Moving Expenses on Your Taxes?
Published: 02 Jun, 2023
Last Updated: 03 Jul, 2023
If you’re wondering, “can you write off moving expenses on your taxes,” then this blog post is just for you. We’re all aware of the potential costs involved when it comes to changing locations. But did you know that some of these moving expenses may be tax deductible?
In this comprehensive guide, we will explore what constitutes as moving expenses and whether they are indeed tax-deductible in the US. We’ll delve into specifics about which types of moving costs can potentially be deducted from your taxable income.
Furthermore, we’ll discuss those expenditures that unfortunately cannot be claimed as deductions. Lastly, if certain conditions apply to your situation allowing for such deductions, we will explain how to properly claim them using IRS Form 3903.
So let’s dive deeper into answering the question – “can you write off moving expenses on your taxes?”
Table of Contents:
- What Are Moving Expenses?
- Are Moving Expenses Tax Deductible in the US?
- Which Moving Expenses Are Tax Deductible?
- Which Moving Expenses Are Not Tax Deductible?
- How to Claim Moving Expense Deductions on Your Taxes
What Are Moving Expenses?
Moving expenses are the costs associated with relocating your household from one place to another. These can range from hiring a professional moving and storage company like SEKA Moving, to purchasing packing materials, renting a truck, or even paying for temporary storage.
The good news is that some of these expenses may be tax-deductible if you meet certain criteria set by the IRS. This means that they could potentially reduce your taxable income and lower your overall tax bill.
Types of Moving Expenses
- Packing and transporting: Hire pros to pack, load, transport, and unload your belongings.
- Rental trucks or vans: Move yourself and rent a vehicle.
- Packing supplies: Boxes, tape, bubble wrap – all those little things add up.
- Temporary storage: Fees related to storing items during a gap between moving out and moving in.
Note: Keep track and retain receipts for all potential deductions.
Looking for more information on moving expenses? Check out this IRS resource for a comprehensive list of what is and isn’t deductible.
Are Moving Expenses Tax Deductible in the US?
Planning a move? Wondering if you can write off moving expenses on your taxes? The answer is: it depends.
Before 2018, most people could deduct moving expenses if they relocated for work-related reasons. However, the TCJA has altered this deduction, now limiting it to only active-duty military personnel relocating due to a permanent change of station.
Now, only active-duty military members who are required to relocate due to a permanent change of station can claim moving expense deductions. No federal tax help if you’re not in the military.
But don’t despair. Some states still allow residents to claim certain types of moving costs on their state income taxes. For example, California lets taxpayers who’ve moved within the state for job-related reasons deduct some relocation costs.
It’s important to keep detailed records and receipts related to any potential deductible expenses during a move, just in case. And if you’re unsure about the rules in your specific situation or location, consult with a tax professional or visit official IRS resources online.
Which Moving Expenses Are Tax Deductible?
Moving can be pricey, but are you aware that some of these outlays may be deductible for tax purposes? That’s right. The IRS has set certain criteria for which moving expenses qualify for deductions.
Transportation and Storage Costs
The cost of packing, shipping, or transporting your household goods and personal effects from your old home to your new one is generally deductible. This includes any storage fees you might incur within 30 days after leaving your old home before you move into your new one.
Travel Expenses
If you drove during the move, you could deduct actual vehicle expenses such as gas and oil or take a standard mileage deduction. Other travel-related costs like tolls and parking fees can also be deducted.
Moving Services
You can typically write off the cost of hiring professional movers like SEKA Moving. This would include both labor for packing/unpacking and transportation charges.
In order to be eligible for these deductions, it is necessary to meet certain IRS criteria. For instance, according to IRS guidelines, in order to claim moving expense deductions on taxes related to job relocation, the distance between your new job location and former residence must be at least 50 miles more than what was from old job location. Also, remember that proper documentation is essential when claiming these deductions; keep all receipts related to the moving process safe.
Don’t miss out on potential tax deductions for your move. Remind yourself of these tips and seek advice from a tax expert for further details.
Which Moving Expenses Are Not Tax Deductible?
Moving can be expensive, but not all costs are tax-deductible. To avoid any confusion or issues with the IRS, it’s important to know which moving expenses don’t qualify for this benefit.
Non-Deductible Moving Expenses
Some common non-deductible moving expenses include:
- Meals: Sorry, you can’t write off that fancy dinner you had during your move. The cost of meals is considered a personal expense.
- Lodging: You might need a place to stay during your move, but those costs are also considered personal and don’t qualify as deductible moving expenses.
- Certain Storage Fees: If you have items in storage before, after, or during the move that aren’t immediately transferred into your new home, those storage fees aren’t deductible.
It’s important to note that only reasonable costs associated with a qualified move are potentially deductible. Extravagant or unnecessary expenditures will likely face scrutiny by the IRS.
Consult the Experts
If unsure of which moving expenses are valid deductions, it is wise to review the IRS regulations, consult a CPA or utilize dependable online sources such as TurboTax.
How to Claim Moving Expense Deductions on Your Taxes
Moving can be a hassle, but did you know you can claim some of those expenses on your taxes? Here’s how:
Filing Requirements
First things first, gather all your receipts from the move, including bills from the moving company, storage fees, and any other costs directly related to your relocation.
Deduction Form
Next, download IRS Form 3903 – Moving Expenses from the IRS website. Fill it out carefully, listing all your eligible moving expenses.
Tax Return Filing
Ensure you submit your completed form along with Form 1040 by the annual April deadline to avoid any penalties or interest charges. Missing the deadline could result in penalties or interest charges.
Note:
- The IRS only allows moving expense deductions for work-related moves within the United States.
- If you’re unsure which expenses qualify for a deduction or how to fill out Form 3903 correctly, consider consulting with a tax professional for expert advice tailored to your situation.
Don’t miss out on potential tax savings – keep those receipts and claim your moving expenses.
