Moving can be an exciting yet overwhelming experience, and the financial aspect is often one of the most stressful parts of the process. One question that frequently comes up is: Are moving expenses tax deductible? Let’s break down what you need to know about tax deductions and moving expenses.
The Current Tax Law
Prior to 2018, the IRS allowed many taxpayers to deduct certain moving expenses if their relocation was related to a new job or job transfer. However, under the Tax Cuts and Jobs Act (TCJA) passed in 2017, moving expense deductions were suspended for most taxpayers from 2018 through 2025.
Currently, only active-duty military members who are moving due to a military order are eligible for moving expense deductions. If you’re in this category, you may be able to deduct reasonable moving expenses, such as costs for transportation, packing, and storage.
For most taxpayers, this means that while moving expenses are no longer tax deductible, there are still ways to manage your moving costs effectively.
How to Handle Moving Expenses Now
Although the tax break for moving expenses isn’t available for most people, there are still ways to make your move more affordable. Companies like Eco Movers offer solutions that can help ease the financial burden, such as rentable moving boxes and competitive moving rates that prioritize sustainability and convenience. Learn more about our services here.
Alternatives to Deducting Moving Expenses
Even if you can’t deduct your moving expenses, there are other ways to potentially offset the cost:
- Employer Reimbursement: Some employers offer relocation assistance as part of a job offer or transfer. Check with your employer to see if they provide moving expense reimbursements or allowances.
- Corporate Relocation Packages: For those moving for work, some companies offer comprehensive relocation packages that cover everything from hiring movers to temporary housing. These packages may include direct payment for moving expenses or reimbursement upon submission of receipts.
- Budget-Friendly Moving Options: If you’re managing the costs on your own, consider renting moving supplies or choosing a local, eco-friendly moving company like Eco Movers, where we provide cost-effective options without sacrificing service quality.
Conclusion
For most taxpayers, moving expenses are no longer tax deductible under the current law, except for military members. However, planning ahead and taking advantage of alternative resources, like employer reimbursement and services from companies like Eco Movers, can help ease the financial load.
If you’re planning a move and want an eco-friendly, affordable solution, Eco Movers has been voted the Best Moving Company in the Pacific Northwest and Best Moving Company in Pierce County. Get in touch with us for a free estimate and see how we can make your move a smooth and cost-effective experience.
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