Are Moving Expenses Tax Deductible?

May 10, 2019 in Blog


Until recently, the moving-expenses tax deduction made relocating for work a little less painful. As part of the Tax Cuts and Jobs Act, or TCJA, most workers can no longer ease the transition with this federal tax deduction – but some still can. Total Storage Solution, with self storage facilities in La Porte, TX and other communities, explains how this change could affect you.

Claiming the Deduction

You can still claim the deduction if you’re filing your 2017 return late – you have until April 18, 2020 to file your returns and claim a refund, though penalties could be in effect. Afterwards, the U.S. Treasury will keep any refund you would have received. Active-duty military members are unaffected by the change and can claim the deduction for the 2018 tax year. You must pass these three tests to claim work-related moving expenses:

  • Time Work at least 39 days in the 12 months after you move
  • Qualifying Expenses Only claim expenses necessary for completing the move
  • Distance Be employed at least 50 miles from both your old home and old workplace; if you’re retiring or ending your military service, you’re exempt from the distance test

Reduce your taxable income by claiming your expenses on IRS form 3903 when filing your federal return. There’s no need to itemize. The deduction can be claimed on line 26 of form 1040 for 2017 as an adjustment to income. Some states still allow taxpayers to use the deduction until further notice; ask your preparer if this is the case in your state.

Other Ways to Cut Moving Costs

Fortunately, the tax deduction for moving expenses isn’t the only way to save on relocation costs. While professional moving companies make relocating easier, costs add up quickly. Consider packing and loading your own rented truck to reduce expenses. Moving mid-month, early in the day, or on a weekday could result in discounts if you want to avoid the DIY route. Many smart movers rely on self storage to keep their belongings secure and easily accessible while relocating. Don’t waste money by reserving a unit that’s too large for your needs. Contact our friendly employees for assistance or choose a unit with help from our online size guide.

Self Storage Can Help You Move

Whether you’re an active-duty member of the military or filing a previous year’s return, deducting moving expenses can help you save a bundle at tax time. Fortunately for the rest of us, there are other ways to reduce expenses on things like moving services and self storage. Contact Total Storage Solutions for affordable units in La Porte, TX and other locations around the country.