Many people move throughout the year due to job transfers or promotions, which can easily add up to thousands of dollars just to relocate. Some companies provide partial compensation, but the cost can still be at the expense of the employee. Instead of getting stuck with the bill, try to record each of the moving expenses, which can be used as a tax deduction later in the year.
Moving Truck and Movers
Paying movers to pack your belongings and transferring them to your new location may seem like a luxury, but can actually be recognized as a write-off when tax season approaches. The cost of moving boxes, bubble wrap, and packaging tape can also be factored in for supplies that attribute to the overall cost. Keep all receipts for your records.
Fuel
When relocating hundreds to thousands of miles away, the cost of fuel can quickly add up for all cars and moving trucks that were driven to the new location. Fortunately, you can claim 24 cents to the mile for each vehicle used, which will be recognized as a reputable write-off. Tolls and parking fees can also be factored in to the expense.
If certain family members flew or took other modes of transportation when relocating, this can also be used as a write-off due to the necessity of the expense.
Storage Units
During a move, many people need to rent a local storage unit to hold extra belongings that may need to be transported at a later date. According to U-STOR, a company that specializes in self storage in Zionsville, business-related items can be stored in a secure and climate-controlled unit during a move. This is an additional tax deduction for up to 30 days that it is used, but it must be business-related to count as a proper deduction.
Utility Fees
When relocating, there are often several fees involved with disconnecting the cable, telephone service, wifi, and electricity. All of these fees can add up to hundreds of dollars, but can also be accounted for as a write-off that is related to your move when filing your taxes. Keep all receipts and emails for up to seven years to prove the expense should an audit ever occur.
Moving doesn’t have to be such a headache if the expenses are properly recorded to be used as tax deductions that can pay off. Although it can be difficult to afford every minor and major expense involved with a move, the overall cost can be greatly reduced after documenting your write-offs and receiving the proper credit.