Moving to a new home can be an exciting yet challenging experience, and the expenses that come with it can add up quickly. From hiring movers to buying packing supplies, every little cost contributes to the total price tag. Naturally, many people wonder, can you claim moving expenses on taxes? The answer depends on several factors, including your employment status, location, and state tax laws.
At Simplicity Financial, we make it our mission to provide clear guidance on complex tax matters. Whether you’re moving for a new job or relocating to a different state, we’re here to help you navigate moving expense deductions and make the most of your tax return.
Are Moving Expenses Tax Deductible?
One of the most common questions people ask is, “are moving expenses tax deductible?”. The answer has changed in recent years. Prior to the Tax Cuts and Jobs Act of 2017, moving expenses were deductible for many taxpayers. However, today, only a select group of individuals can claim moving expenses on their federal taxes.
Here are the key circumstances where moving expenses may still be deductible:
- Active-duty military members: If you’re an active-duty service member who moves due to military orders, you can still claim moving expenses on your federal tax return.
- State-level deductions: While the federal government removed the deduction for most people, some states, including California, still allow taxpayers to claim certain moving expenses on their state tax returns.
If you think you might qualify, it’s important to understand which moving expenses are tax deductible and how to properly document them.
What Qualifies as Moving Expenses?
What qualifies as moving expenses? The IRS has specific criteria for what counts as a deductible expense. In general, qualifying expenses must be directly related to the move and necessary for the relocation process. These include:
- Packing materials and supplies
- Hiring professional movers
- Storage fees
- Shipping personal items
- Rental trucks and moving vans
Non-qualifying expenses include the cost of meals during the move, the cost of selling your home, and personal expenses like carpet cleaning or purchasing furniture.
If you’re unsure about what qualifies as a moving expense, our experts at Simplicity Financial can walk you through the process and ensure you claim every eligible deduction.
What Moving Expenses Are Tax Deductible?
If you’re eligible for a deduction, it’s crucial to know what moving expenses are tax deductible. For eligible taxpayers, here are some common moving expenses that can be deducted:
1. Transportation Costs
This includes the cost of hiring a moving company, renting a moving truck, or shipping personal belongings to your new home. Fuel, mileage, and tolls incurred during the move are also considered transportation costs.
2. Packing Supplies and Materials
Boxes, tape, bubble wrap, and other packing supplies can add up. Fortunately, these items may be tax deductible if you’re eligible to claim moving expenses. Be sure to keep your receipts as proof of purchase.
3. Storage Fees
If you need to store your belongings while moving, you may be able to deduct storage costs for up to 30 days. Storage is often required if there’s a gap between moving out of one home and moving into another.
4. Travel and Lodging
If your move requires you to stay in a hotel or motel during the process, the cost of lodging is generally tax deductible. However, food and meal expenses incurred while traveling are not eligible for deductions.
5. Utility Disconnections and Installations
Certain utility fees, such as disconnection or connection charges, may be tax deductible. For example, if you need to turn off services like water, electricity, or internet at your old residence, the costs may qualify for deductions.
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Can Moving Expenses Be Deducted in 2025?
With the ongoing changes to federal tax laws, it’s natural to ask, can moving expenses be deducted in 2023? For most taxpayers, the answer is no — at least not at the federal level. However, there are two key exceptions to this rule:
- Active-duty military members: Those serving in the military and relocating under military orders are still eligible to deduct moving expenses on their federal tax return.
- State deductions: Certain states, including California, still allow residents to deduct moving expenses on their state tax returns.
If you’re wondering whether you can still deduct moving expenses in your state, Simplicity Financial can review your eligibility and ensure you don’t miss out on potential savings.
How to Claim Moving Expenses on Taxes
If you’re eligible for a moving expense deduction, here’s how to ensure you claim it correctly on your taxes:
Keep Detailed Records
Save receipts for all expenses related to the move, such as moving truck rentals, gas, packing materials, and storage fees. The IRS requires documentation to prove that your claims are accurate.
Use IRS Form 3903
If you’re a military member claiming moving expenses on your federal taxes, you’ll need to complete IRS Form 3903. This form outlines your eligible expenses and is submitted along with your federal tax return.
Consult a Tax Professional
Navigating tax deductions can be tricky, especially if you’re unsure whether your state allows moving expense deductions. With our tax preparation outsourcing, Simplicity Financial can review your situation and help you claim every deduction you’re entitled to.
Why Work With Simplicity Financial?
If you’re asking yourself, “can I deduct moving expenses?”, the answer may not be as straightforward as you think. Fortunately, you don’t have to figure it out alone. Simplicity Financial offers expert tax preparation, outsourced bookkeeping services, and fractional CFO services to help you maximize your tax savings. Here’s why we stand out:
- Expert Guidance: Our team stays up to date on changes to tax regulations, ensuring you’re fully informed of every opportunity to save.
- Personalized Support: Every taxpayer’s situation is different, and we offer customized advice based on your unique needs.
- Remote Convenience: Our fully remote services mean you can get the support you need from anywhere in the U.S.
With Simplicity Financial on your side, you can feel confident that your taxes are handled with precision and care.
Claim Moving Expenses With Simplicity Financial Today
If you’re wondering, can you claim moving expenses on taxes, Simplicity Financial has the answers. Our expert tax preparation and accounting services help individuals, businesses, and non-profits navigate every aspect of their finances. Our fully remote model allows us to support clients across the U.S., offering personalized service no matter where you are.
Take the stress out of tax season by partnering with Simplicity Financial. Contact us today to schedule a consultation and discover how our tax experts can maximize your refund.
FAQs: Can You Claim Moving Expenses on Taxes?
Can you claim moving expenses on taxes in 2023?
For most taxpayers, moving expenses are not deductible on federal taxes in 2023. However, if you’re an active-duty military member or live in a state like California that allows for state-level deductions, you may still qualify.
What qualifies as moving expenses?
Eligible expenses include transportation costs, packing supplies, and moving truck rentals. However, meals, home sale expenses, and new furniture are not deductible.
Can moving expenses be deducted on federal taxes?
Only active-duty military members can deduct moving expenses on federal taxes. This rule was established by the Tax Cuts and Jobs Act of 2017.
Are moving expenses tax deductible in California?
Yes, California is one of the states that still allows taxpayers to deduct certain moving expenses on their state tax return.
What are some things I can do while Simplicity Financial handles my taxes?
While Simplicity Financial handles your taxes, you can enjoy some of the many attractions in your area. Consider visiting the Chaffey Community Museum of Art, exploring Schabarum Skyline Trail, or spending quality time with family and friends.
How do I claim moving expenses on my tax return?
To claim moving expenses, you’ll need to complete IRS Form 3903 and submit it with your tax return. If you’re claiming state deductions, follow your state’s specific guidelines.
Do I need to file any special forms to claim moving expenses?
Yes, you must file IRS Form 3903 if you’re an active-duty military member claiming moving expenses on federal taxes. State forms may vary, so check with Simplicity Financial for specific requirements.
Can I claim moving expenses retroactively?
No, you can only claim moving expenses for the tax year in which the expenses occurred. However, you may be able to file an amended return if you discover eligible expenses after filing.
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