Are you planning a household move soon? Moving for work can be an exciting adventure, but there are many things to consider — including the expense. While you are probably searching for ways to save some money on your move, don’t count on being able to write your expenses off as a tax deduction. 

 

In 2018, the IRS revised many tax policies, including eliminating the moving expenses tax deduction. While a handful of states still permit the deduction on state returns, the federal government only allows a deduction for a specific population— active military personnel.

Tax Changes

The 2017 Tax Cuts and Jobs Act suspended the moving expense deduction for the general population and will not be available again until 2025. Although individuals can still amend tax returns for years before 2018, no deductions are available for current tax years through 2025. 

Military Personnel Moving Expenses

It is possible that military personnel can still claim moving costs on Form 3903. Individuals are required to disclose any employer-provided moving reimbursements on this form. Deductions are only allowed for legitimate costs that exceed reimbursements. Experts advise contacting your tax professional for specific guidance on these deductions.

Other Ways To Reduce Moving Costs

Though moving costs are no longer tax deductible, there are other ways to save money when relocating. Since moving is costly, and the expenses add up quickly, you can save a significant amount of money on your move if you follow the right advice and plan ahead. Here are a few suggestions:

 

  • Declutter and donate before you pack – reducing the amount of stuff you must relocate.
  • Research moving companies to get the most cost-effective services for your type of move.
  • Handle the packing yourself by utilizing gently used boxes and materials so you don’t have to buy new items.
  • Move during the off-peak season for reduced mover rates.

 

Consult Tax Advisor

It is critical to keep up with changes in tax law or seek advice from someone who can. As with any tax issue, you should consult with your tax advisors. 

Free Moving Quote

Contact us today for a free moving estimate. When you choose Molloy Moving & Storage, you will be assigned a personal move coordinator. This person will act as a concierge, helping you with scheduling, planning, and handling any issues that may arise during the move.