Are Moving Expenses Tax-Deductible?

Staying abreast of tax laws can be challenging because they change so frequently. If you must relocate for your job, it’s reasonable to wonder if you can deduct moving-related costs from your taxes.

The 2017 Tax Cuts and Jobs Act changed the rules for claiming the moving expenses tax deduction. Unless you are an active-duty military service member, moving expenses are no longer deductible, meaning you can no longer claim them on your federal return. This change applies to the tax years 2018 to 2025.

You might still qualify for a deduction if you currently serve in the armed forces and meet specific circumstances. If you’re not an active-duty service member, you may still want to track your moving expenses depending on where you live. That’s because a small handful of states continue to provide a deduction on your state tax return if you meet given requirements.

Which Moving Expenses Are Deductible?

If you are a military service member who must move due to a permanent change of station, you can deduct unreimbursed expenses associated with moving yourself and your family if you include them on Form 3903 as an attachment to your Form 1040. These include the costs of hauling a trailer, packing, insurance and storage, but not meals or any expenses essential to buying a new house.

You can also deduct the amount you spend on traveling from your old home to your new one, including airfare and car-related expenses such as gas, oil, mileage, parking fees and tolls. However, you cannot deduct any part of repairs, insurance or depreciation on your vehicle, and you also can’t deduct any unnecessary costs like side trips or expensive lodging.

How to Save Money on Your Moving Expenses

If you aren’t eligible to deduct moving expenses from your taxes and your employer isn’t willing to defray your costs, you can still find ways to save money on your move with these strategies.

Schedule During the Off-Season

Moving companies generally see less demand in the fall and winter because these seasons tend to bring rainy, chilly weather that’s not ideal for hauling your belongings from one place to the next. If you can be flexible, scheduling your relocation during these off-peak times might help you keep more of your hard-earned cash in your pocket.

Downsize Your Possessions

In the months leading up to your move, go through your home and figure out what you don’t want to keep. You can donate anything you don’t need anymore or sell it on a site like OfferUp or Craigslist. As a rule of thumb, the more stuff you have, the more it will cost to move because you’ll need to buy extra packing supplies to accommodate it all. It’ll also take more time to get everything boxed up and loaded onto your truck or trailer.

Hire Experienced Professional Movers

While you might worry that hiring a trained team to help with your relocation will be pricey, it can save you more money on moving expenses in the long run. At Fox Moving and Storage of Charlotte, we have the know-how to protect your valuable belongings from damage and handle all the heavy lifting to prevent you from accidents and injuries. Our team can swiftly and efficiently complete your move for your ultimate peace of mind. Contact us today to request your complimentary quote.