Tax Deductions For Moving Expenses
About 28 million Americans made a move in 2021, including about 5 million people
who moved across state lines. Whether you hire movers or go DIY, Umzugsskosten
can add up quickly. That’s why it’s important to plan carefully and include all the
potential costs.
The costs of a move are determined by how many rooms there are in your home,
the amount of furniture or other items you’re transporting and the distance between
your old and new homes. Other determining factors may be the type of transport
used (truck, air or ocean), whether specialty services like disassembly or crating are
needed and how long you need to store your belongings.
Hiring a professional mover is generally the most cost-effective option. Local movers
charge a flat rate based on the number of rooms in your home, with additional fees
for stairs and other special requests. In addition, many movers offer add-on services
like unpacking, cleaning and disposal of boxes and supplies. The cost of these extras
can significantly increase the overall bill.
It’s also a good idea to review your moving quotes carefully, noting what each one
does and doesn’t include. The time of year when you move can affect the price, with
summer being peak moving season and resulting in higher prices. If possible, you’ll
want to schedule a move in the fall or winter.
If you are moving for work, your employer may reimburse you for certain moving
expenses. This typically applies to moves within the same city or state or to another
country in the United States or its territories. In addition, your employer may
reimburse you for moving expenses if you are reassigned to a different position or
job that requires relocation.
For more information about these and other moving-related tax deductions, visit the
IRS website.
Some expenses you incur before your move that can be deducted include the rental
or purchase of a truck or trailer, fuel and tolls, and lodging. You can also deduct the
cost of shipping your vehicle to and from your new location, if necessary. You can
also claim the cost of storing and insuring your goods while in transit. You can do
this for up to 30 days after your goods leave your previous home and before they are
delivered to your new one. This can be a useful service if your new home isn’t ready
to receive your belongings or if you are making a temporary living arrangement
while looking for a permanent residence. Moreover, you can store and insure your
goods for up to 60 days after leaving a military base if you are being relocated
overseas. However, the goods must not be sold or bartered during this period. You
can also claim these costs if you’re moving for a medical condition or family
emergency. These claims can be difficult to verify, so it’s best to keep records of all
the costs you incur.