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Write it Off: Tax Deductible Moving Expenses

Money—you can’t move without it.

Your mind might shut off as soon as you here the word ‘taxes,’ but don’t worry; the world of tax deductible moving expenses is straightforward, though things have changed in recent years. According to the 2018 Tax Cuts and Jobs Act (TCJA), tax deductions for moving in 2018-2025 are suspended for most people. [1] Now, only military personnel can receive tax deductions for a variety of moving costs.

While this is true, your North Carolina moving company wants you to be aware of what you may be able to write off if you’re in the military or if the act happens to be changed in the future.

Firstly, in order to claim tax deductible moving expenses, your move must be work-related and at least 50 miles from your previous home. Additionally, you must be employed at the new job for at least 39 weeks full-time in the year you move to your new home.

If you meet those qualifications, then you can be sure to receive tax deductions for a few moving costs. Don’t expect to write off all of your moving expenses, though. That night out with your family at one of South Charlotte’s incredible restaurants does not warrant a tax deduction.

Here are a few items that usually count as tax deductible moving expenses:

Transportation: As long as your new home is at least 50 miles away, you can write off expenses such as fuel or vehicle rentals. Depending on the distance of your move, this can save you a pretty penny.

Rooming: You might find yourself moving a few states away for that new dream job. That means that you will probably have to find lodging somewhere in a hotel or Airbnb. No worries—your hotel stay is one of many tax deductible moving expenses.

Packing & Belonging Transportation: Any money spent on packing materials and truck rentals also necessitates tax deductions. If you bought a surplus of cardboard boxes, you can get your money back in no time.

Storing & Insuring: If you purchased a storage unit with its subsequent insurance, that qualifies for a deduction, too. These moving costs can get pretty steep, making tax deductions especially helpful.

Connecting & Disconnecting Utilities: Wi-Fi, electric, water—if hooking up any of these necessities costs you extra money, write it off. It seems surprising, but costs incurred while reconnecting your utilities count as valid tax deductions.

In previous years and hopefully in years to come, these items have commonly qualified as tax deductible moving expenses. If you are military personnel, you can still claim such deductions now.

Your North Carolina moving company knows just how expensive moving can be, especially if you’re moving for a new job and weren’t planning on relocating before. For this reason, it’s extremely important to get money back where you can to be used for future necessities in your new home. Contact our All My Sons movers today and don’t stress, just write it off!

[1] Sol Schwarts & Associates, P.C.