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Moving Expenses: What is Tax Deductible?

If you have moved or plan to move, be sure to take advantage of any potential cost savings. You may be eligible for tax deductions based on your background and moving experience. The Tax Cuts and Jobs Act has suspended moving tax deductions for most Americans, but certain individuals still qualify. All My Sons Albuquerque Moving & Company created this guide to help you determine whether or not you’re eligible and how to deduct moving expenses.

Do You Qualify for Moving Tax Deductions?

As previously mentioned, the Tax Cuts and Jobs Act suspended moving expense deduction until 2025. The following two categories are the only exceptions to the law. If you’re a part of either group, you’re eligible for cost savings.

Military Personnel: You are eligible to deduct moving expenses on your tax return if you meet two requirements. First, you must be on active duty or are a spouse/dependent of a member of the Armed Forces on active duty. Second, the relocation must be a permanent change of station. This includes moving to your first station, moving from one to another, and moving from your last station to your home.

Job Relocation: You may be eligible to claim your moving expenses on your federal tax return if you moved for work before 2018. However, there are strict time and distance requirements. For the time requirement, you must have worked a minimum of 39 weeks within the first year. For the distance requirement, your new job must be located at least 50 miles further than your old home was to your former place of employment.

If you received reimbursements for your move from your new employer, you may not be eligible for a moving expenses deductible. Moving expenses that exceeded the reimbursement can be a moving expense deduction; however, reimbursements that exceeded moving expenses need to be claimed as taxable income.

What Moving Expenses Can Be Claimed?

Your moving expenses can be claimed if they are absolutely necessary to the move. This includes packing and transporting belongings, shipping a car, disconnecting utilities, storage, lodging, and transportation. You cannot claim the food or drink costs that were incurred during the move. The storage expenses are valid within 30 days after you move out of the old home and before you move into the new home. If you qualify, be sure to take advantage of the moving expense deduction.

Whether you qualify for moving tax deductions or not, our Albuquerque moving company is committed to affordable and quality moves. Our moving consultants will work with you to create a moving package that suits your needs. With over two decades of experience, our Albuquerque auto movers are equipped to handle all of the packing, loading, and transporting of your belongings. Call our Albuquerque long distance movers for a free moving quote today!