Are Moving Expenses Tax Deductible? 🧾

KEY TAKEAWAYS

• Tax-deductible moving expenses are limited under current IRS regulations.

• Relocation for active-duty military personnel often qualifies for deductions.

• Save all receipts and documentation to prepare for filing taxes.

Are Moving Expenses Tax Deductible?

Well, yes and no...

The 2017 Tax Cuts and Jobs Act changed the rules for claiming the moving expense tax deduction. For most taxpayers, moving expenses are no longer deductible, meaning you can no longer claim this deduction on your federal return. This change is set to stay in place for tax years 2018-2025.

Understanding the Tax Implications of Moving

Moving to a new home, whether for work or personal reasons, comes with its own set of financial considerations.

One question that often arises is: "Are my moving expenses tax deductible?"

Here’s what you need to know about navigating the current tax regulations and maximizing any potential deductions.

The Tax Cuts and Jobs Act (TCJA) and Its Impact

In 2017, the Tax Cuts and Jobs Act (TCJA) significantly altered the landscape for moving expense deductions.

Under these changes:

• Moving expenses are no longer tax-deductible for most individuals.

  
  

• The deduction is now primarily available for active-duty members of the U.S. Armed Forces who are relocating due to a military order.

Criteria for Deducting Moving Expenses (For Active-Duty Military)

If you are an active-duty military member, you can deduct moving expenses if:

• Your move is related to a permanent change of station.

  
  

• You meet the distance and timing tests outlined by the IRS.

Qualifying expenses may include transportation, packing services, and storage fees.

How to Prepare for Filing Taxes After a Move

Even if your move isn't tax-deductible, keeping organized records is always beneficial.

Here’s how to stay on top of your moving-related financials:

1. Track All Expenses: Create a detailed list of every cost associated with your move.

   
   

2. Consult a Tax Professional: A CPA or tax advisor can help clarify your specific situation.

   
   

3. Understand State Tax Laws: Some states may offer deductions or credits even if federal options are unavailable.

Final Thoughts

While federal tax deductions for moving expenses are limited, understanding the rules can help you avoid surprises when filing your taxes.

If you’re relocating as part of a military order, keep detailed records of qualifying expenses to maximize your deduction.

For more information about planning a seamless move, contact Packhorse Moving today!