28 Jul Are Moving Expenses Tax Deductible & Other Money Saving Tips
Are Moving Expenses Tax Deductible & Other Money-Saving Moving Tips
Moving can be costly. In addition to moving yourself or hiring moving professionals, you’ll have moving costs that are not immediately obvious. These expenses can easily add to the moving budget. On the bright side, Ralph’s is here to answer questions on how to save money during your upcoming move. Questions like “are moving expenses tax deductible”. Some of these tips will also help make sure that you’re taking all appropriate measures to ensure that any moving expenses that are tax write-offs are also considered. Ready to hear our tips? Then keep moving along…
Are moving expenses tax deductible?
The answer is “Yes” if the following applies: You must meet the IRS distance test, and your move must be closely related to starting work. If this sounds like you, check with your CPA or tax professional before filing any return for a moving deduction.
Tax Deductible Information
There are many deductions available to those on the move. The best place to start is with your tax professional. When tax season arrives, consult your financial advisor for ways to maximize your refund. Here are some common moving expenses that are tax deductibles for which you may qualify:
1. Cost of shipping a car
2. Cost of lodging while en route to your new residence
3. Cost of moving pets
4. Shipping, crating, and unpacking costs
5. Transportation and hauling from your old property to your new one
Your eligibility for these cost-saving measures often hinges on the following qualifications:
1. You are moving to start a new job
2. You are moving to a foreign country or are in the military
3. You are self-employed and intend on working for at least 78 weeks during your initial 24 months. In addition, 39 of those weeks must be within the first year.
4. You work full-time and will be working for 39 weeks during your first year in the vicinity of your new home.
5. Your new job will be at least 50 miles further away from your new residence than your previous job.
How to keep track of moving expenses for taxes?
The moving expenses you deduct can be claimed in the year your move takes place. Keep moving receipts (and any other tax-deductible moving expense) and documentation for moving services like packing, storage, etc. You also can utilize an Excel spreadsheet from your computer or even your phone, listing the items and services you purchased for moving.
Keep a record of moving services used, estimated or actual costs for each service, name of moving company/person providing.
If moving is being done via a moving company you should have an estimate on how much your moving will cost for the move. Save those invoices and receipts.
You can deduct moving expenses in excess of $500 by filing specific forms and attaching it to your tax return. For moving expenses over $5,000, you will use a different form that can be provided by your tax professional or even the irs.gov website. If you need moving services and need to lower moving costs, you can move yourself by container or moving truck.
Where can I get info from the IRS about tax deductions for moving?
You can find information like “are moving expenses tax deductible” at the irs.gov website in Publication 521 – moving expenses. You will also find moving expense deduction charts as well as moving services fee information. Moving companies that offer moving dumpster services are recommended to use a moving dumpster rental company rather than waste removal companies for moving purposes.
How to save money on moving costs?
Moving can be very expensive. The average cost of moving from one household to another can average anywhere from around $3,000-$4,000. There are many ways to save money on your move if you plan ahead and shop wisely, even if your moving expenses are not tax deductible.
Here are Ralph’s top money-saving moving tips that you can use to can cut costs and ensure your move goes according to plan and budget:
1. Eliminate unnecessary items from your packing list.
By leaving bulky, heavy, or extraneous items behind, you’ll save a lot on shipping costs. Of course, you’d be wise to sell these items before the big move to get a little cash in return.
There are many ways you can put your unwanted property up for sale:
Online Auctions: You can get top dollar for rare and collectible items on online auction sites. Just be sure to set a reasonable reserve price and be patient.
Classified ads: List your items in the local paper or on Craigslist, including a fair asking price and contact information.
Yard sales: Put signs up around the neighborhood offering to sell your unwanted items from the sidewalk or driveway. Take out the middleman and invite buyers right to your door. The key to a successful garage sale is good advertising.
Secondhand stores: Consignment and antique shops are always looking to add to their collections.
Flea Markets: Here, you can barter with vendors to seek the highest price in return for your furniture or collectibles.
Charity: When possible, it is always a good idea to donate good furniture, clothes, and essentials to charitable organizations that can direct them towards people who need them. Be sure to keep your receipt for income tax purposes.
A good way to save on your move is to sell as much of your unwanted furniture, appliances, and other household goods before you leave. If you absolutely cannot part with these items, we offer cost-effective ways to pack them for safe shipping.
2. Rent storage space instead of renting a moving truck.
This could save you up to 50% or more off the cost of hiring a moving company. Determine the layout of your furniture and appliances before you pack. That way, you will know what will and won’t fit. And just a general tip: if it won’t fit, don’t move it.
3. Packing Tips when thinking outside the (moving) box.
If you have a green thumb and want to bring planters and outdoor decorations, remove all soil and use them as containers for other things.
Packaging for CDs, DVDs, etc. are bulky and costly to ship. Leave the packaging behind or convert your library to mp3 and sell your physical copies back to music stores.
Items like workbenches, sawhorses, stools, and tables are often best left behind.
Never move household repair items like firewood, lumber, gasoline, fertilizer, pesticides, pool chemicals, or paints. Moving some of these items can be heavy or even dangerous. Plus, the cost of shipping often far exceeds its value.
4. For valuable bulky items you do not want, you may want to include them in the property sale.
Swing sets, billiard tables, pianos, antique furniture, and other items can attract buyers and potentially increase the final sale price. If the home has already been purchased, consult with the buyer to gauge their interest in retaining these items.
5. If you are owed any deposits, collect them before you depart.
It is always more convenient to recover funds in person. Your homeowners insurance company may owe you a refund for bills you have paid in advance – or it may be possible to put your balance towards your new residence. By doing so, you will ensure your new residence is immediately covered. Fitness centers, country clubs, and other groups may offer refunds to members who have paid dues in advance.
These are just a few of the money saving moving tips we have found to be most effective over the decades. If moving is in your future, you should definitely consider what items are truly worth moving.
Remember, when it comes to packing boxes for moving, Ralph’s has the highest quality and lowest prices when it comes to moving supplies. When it comes to questions like “are moving expenses tax deductible”- we are just a phone call away and happy to share any moving expense tips we can with your unique situation. Reach out today!
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