Is there a move in your near future? If you’re planning on moving homes or offices, you should keep track of your moving expenses—they might just count as tax deductions. Most people don’t want to pay Uncle Sam any more money than they absolutely have to. Check out this list of deductible moving expenses to see if you can save some cash next time tax season rolls around.
Does your move qualify?
Most moves are no longer tax deductible, thanks to the 2017 Tax Cuts and Jobs Act. However, if you moved prior to 2018, or if you’re in the military, you can still write off those expenses. Additionally, this is good information to keep in mind in the event the moving expenses deductions are restored after 2025. Plus, your state may allow you to deduct them, even if the federal government does not.
Before you can write off your moving expenses, you’ll need to pass two tests: the distance and time tests. The distance test asks you to calculate the distance between your old home and new workplace, and your old home and old workplace. If the “old home to new workplace” commute is 50 or more miles further than your old commute, you pass the distance test.
The time test requires you to work at least 39 weeks in the first year after you arrive in the area. If you’re married, only one spouse has to pass these tests. There are certain exceptions if you lose your job or are in the military.
Deductible moving expenses
If you qualify for a moving expense tax deduction, here is what you can deduct:
- Moving expenses for you and your family: You can only deduct moving expenses for yourself, your family and your possessions—so don’t try to write off moving expenses if you help a friend pack up.
- Cost of movers or DIY supplies and rentals: Whether you hire professional movers or rent a truck to do it yourself, you can deduct those costs. Track the costs of boxes, padding, tape, sharpies and anything else you need to get the job done.
- Gas and mileage: If you’re moving by car, deduct the gas costs and standard moving mileage rate.
- Lodging expenses for one night: If your furniture didn’t show up right away, you can deduct the cost of lodging expenses for one night.
- One pre-move trip: If you travel to the new location before your move, you can deduct the costs of one trip. This is good if you need to travel for inspections, paperwork and other pre-move logistics.
If you qualify for moving tax deductions, be sure to check with your accountant to make sure you’re getting the maximum deductions available. Don’t forget to work with a great shipping company for your belongings, too. Quality Experienced Moving, Inc. is here to help you transport your goods to ensure they get where they need to go. Get in touch with us today to get started with the planning process.