Are Moving Expenses Tax-deductible?
                     Are Moving Expenses Tax-
deductible?
Moving or relocating to another place brings stress. After all, there are several
things to plan out. And, it seems a bit tougher than it really is. On top of that,
moving  expenses  await  your  attention.  Before  we  dig  deep  into  this,  we
suggest you hire the  best  Movers in Sacramento  for hassle-free moving. You
don’t want to lose yourself in piles of things.
Right?
What are Moving Expenses?
Moving expenses are the costs fulfilled by a taxpayer when they move for their new job. It could
also be a job transfer to a different location. The Tax Cuts and Jobs Act of 2017 (TCJA) made
some amendments. It introduced the removal of tax-deductible moving expenses for the years
2018 till  2025. As a result,  most taxpayers can no longer qualify for the deductible expenses.
However, there are some exceptions where tax deductions still apply. We will talk about this later.
The deductions of expenses with reasonable costs exist. Be clear that you have to bear the costs of
meals while moving as they do not fall into a deduction.
Eligibility Requirement for Deductible Moving Expenses
The IRS conducts a time-distance test to determine whether you qualify for deductible moving
expenses.
Time Test
The  timing  of  your  move  must  be  in  connection  with  the  commencement  of  your  new
employment to qualify for the tax deduction. To meet this criterion, you will have to start working
at your new job location and work full time for at least 39 weeks within one year after your move.
Distance Test
It  is  about  the  distance  between your  new workplace and your  old residence.  To claim your
moving expenses, your new station of employment must be at least 50 miles away from your
previous house than your old station of employment.
Self-employed
If you are self-employed, you have to work full-time for:
 At least 39 weeks of the first year
 A total of at least 78 weeks of the first two years after your move
Exception
If  you  are  an  active  member  of  the  U.S.  Military,  and  your  move  was  related  to  a  station
relocation or assignment, you do not have to qualify for the time or distance tests. The active
members of the Armed Forces are immune to this new tax reform change.
The members of the Armed Forces use IRS Form 3903 to claim deductions.
Who Can File Form 3903: Moving Expenses?
For tax years before 2018, Form 3903 was filled out by a taxpayer made in a tax year. It meant
those in multiple job-related moves used to complete multiple forms.
The IRS permitted taxpayers to use this form to report other reasonable moving expenses,
such as-
1. The cost of hiring  shipping  companies Sacramento 
2. The travel-related expenses to their new home.
Presently, only the active members of the U.S. military can fill Form 3903. They do not have to
qualify distance or time requirements.
As announced by IRS, taxpayers can no longer claim a deduction for moving expenses. It only
applies to members serving in Armed Forces on active duty.  The military personnel who are
relocating under orders can claim the deduction.
Although this tax change is temporary, discussions are underway to bring enhancements.
Deductible Costs:
 Rental trucks
 Short-term Storage
 Packing
 Shipping
 Interim Lodging
 Moving Supplies
Eligible travel costs:
 Gas
 Oil
 Parking fees
 Tolls
Non-Deductible Moving Expenses:
You cannot deduct the costs of the following:
 Meals related to the move;
 Pre-move house hunting trips;
 Unnecessary Side Trips
 Car Repairs & Maintenance
 Temporary living costs;
 Sales or purchase of a home;
 Any types of Lease;
 Storage exceeding one month after moving into a home;
 Moving expenses that are ineligible for the time or distance tests.
Purchasing furniture or other goods on your way to a new home does not fall into deductible
expenses.
Moreover, some employers reimburse expenses. In that case, you cannot claim for deduction.
Moving company costs  can range from a few hundred dollars to several thousand. It depends
upon the distance you are covering. Also, the number and weight of your possessions influence
the cost. Hire one of the best movers that can help you get your stress off your chest.
How To Save Money If All Else Fails?
So, you are not eligible for tax savings. But, you can still protect your finance. Simply with a
broad perspective, you can cut down your moving costs.
Here is how:
 Pack, load, and unload yourself. Maybe a frowned-upon idea, right? That is how you cut
down costs.  Give  that  muscle  a  little  flex.  Experts  can  come for  the  tasks  that  seem
impossible or risky to you.
 Check for periods when moving costs see a dip. These might occur at mid-month, mid-
week, during fall or winter, or even early in the morning.
 Use digital power. Check the reviews of professional movers, their Better Business Bureau
(BBB) ratings, and insurance.
 Get free cartons from local grocery and liquor shops. You can even ask your friends or
neighbors if that suits you more.
 It  is  never a helpful thing to stack up unnecessary things. Donate them or discard the
useless stuff. Unnecessary storage costs will not make your wallet happy.
 Start using a credit card to gain points or rebates. You can also get bonuses for moving-
related spending – e.g., gas, airfare, temporary lodging, and moving supplies.
Conclusion:
Juggling with stress and being rigid about saving money is not a sane move. Prioritize your health
and hire the best movers Sacramento. Use a moving cost estimator to determine the accurate
cost of relocation. Also, it is always a good idea to use proven strategies to cut your costs.
Have a safe move.
Source:
https://sacramentomovingservice.home.blog/2022/01/20/are-moving-expenses-tax-deductible-2/
A Better Moving