Moving Deductions – What Can You Deduct?
If you are planning a move soon due to work (or for job-related reasons), you should have a decent understanding of how your taxes could be affected. Unfortunately, the Tax Cuts and Jobs Act (TCJA) which was passed late in 2017, means big changes. With the previous tax law, moving families and individuals could deduct their moving costs. These moving deductions included the cost of moving your household items, personal items, and the associated travel costs of getting to your new home.
Previous Moving Deductions
Some of these deductions included the fees one paid to movers and packers, moving truck rental costs, supplies such as boxes and tape, insurance fees, utility hook up and disconnection costs, storage, hotels and lodging, and gas, parking and tolls. The IRS did not cover meals, but now most of these deductions are no longer available for the majority of taxpayers.
Previously, you could use the deduction for moving expenses when your employer didn’t pay for the move and your new work location was a qualified distance away from your old location. There were also time in work requirements. Members of the armed services had their own set of rules. Now, they are the only ones who can receive any type of deduction for moving expenses.
New IRS Tax Changes for Moving Expenses 2018
So for 2018, you will not be able to deduct any moving expenses unless you are a service member in active duty moving due to orders. If you moved in 2017 and you got reimbursed in 2018 (by your employer), you will not have to pay any taxes on that reimbursement. If you get reimbursed in 2019, those amounts will be taxed in the future. The main takeaway here is that if you have the possibility for a work move in the future, be sure to find out what the relocation package includes. You can talk with your tax advisor and your HR contact at your company to find out about moving expenses and reimbursement.
On the Move – The Quality Moving Company for TN
Now that moving expenses will not be deductible on your income taxes, it’s more important that ever to choose a fair and reputable company for your TN moving services. On the Move is licensed, insured, and experienced to make sure your entire move is managed properly from point A to point B. We’re ready to help you prepare for and execute your move with top customer service and satisfaction. Get in touch with us today for a free quote and more information on moving deductions.