4 Ways to Write Off Moving Expenses
Every dollar on your tax bill counts, so it only makes sense to try to deduct as many expenses as possible. If you’ve moved to Dallas or Fort Worth this year, can you write off moving expenses? Exactly which moving expenses can you deduct? We have all the answers you need.
Can You Write Off Moving Expenses?
Before 2018, essentially anyone who moved for a job could write off their moving expenses on their federal tax return. However, that changed with the Tax Cuts and Jobs Act of 2017. So who can write off moving expenses now?
From 2018-2025, moving deductions are limited to active-duty military members who are moving as a result of a military order and permanent change of station. That includes moving from their home to their first point of duty, moving from one point of duty to another, and moving from their last point of duty to their home.
Keep in mind, though, that this is the case for federal tax returns. Some states may still let you deduct moving expenses from your state tax return in certain circumstances. The rules and limitations vary among these states too, so be sure to find out the details in your state.
4 Tips to Follow if You Write Off Moving Expenses
If you qualify to write off moving expenses, make sure you don’t leave money on the table. Follow these tips to make sure you’re deducting everything you can.
1. Don’t Overlook the Obvious
As you prepare for your move, there are two core things you can deduct: direct moving expenses and transportation. Keep track of all your moving expenses like a moving truck, moving materials, and insurance. If you need to store some of your belongings during the move, you can deduct up to 30 days of storage. Find more details in the IRS Form 3903 instructions.
2. Track Your Mileage
If your move involves driving your own vehicle from your old home to your new home, you can deduct the cost of that mileage using the IRS’s standard mileage rate for the period when your move took place.
For example, let’s say you have one personal vehicle for your family. You might transport your belongings in a rental truck and have your spouse drive the family car behind the truck. You can deduct the mileage that the family car drove.
3. Consider Expenses Along the Way
Remember that it isn’t just the obvious moving expenses like a rental truck that you can deduct. You can deduct the transportation costs to your new home too. That includes lodging if you have a multi-day trip. Note that you cannot deduct your meals on the road, though.
4. Include Utility Connection and Disconnection Fees
One moving expense that’s often overlooked but can be written off is utility expenses. Specifically, you can write off any fees for disconnecting utilities at your old home and connecting fees at your new home.
Saving on Your Tax Bill When You Write Off Moving Expenses
Not everyone can write off moving expenses, but if you do qualify, make sure to keep all the details and documentation so you don’t leave money on the table. The tips above can help you get the deductions you deserve.
If you’re moving to Texas, RecNation welcomes you! We’re your source for RV and boat storage, helping you protect your essential toys while you’re getting settled. Contact us today to learn more.