Are Moving and Storage Expenses Tax Deductible? A Comprehensive Guide

Are you planning to move and wondering if your moving and storage expenses are tax deductible? You may be able to deduct the cost of moving your household items and personal effects, including the cost of transporting a trailer, packaging, in-transit storage, and insurance. However, the tax reform changed the rules related to moving expenses, so for most people, the answer is no. Military personnel can still claim the deduction, but must meet certain requirements to qualify. If you move for work, you may be able to deduct certain expenses associated with moving your household goods and personal effects.

Examples of these expenses include the cost of packing, packing, transporting a trailer, in-transit storage, and insurance. When counting the expenses you plan to claim as your moving expenses tax deduction, all of them must count as reasonable and necessary for your move. This includes parking fees and tolls you pay to move. If you are reimbursed by the government for any of your moving expenses, you will not be able to claim these costs as a deduction from your taxes.

If you are a business owner planning to move or if your business is relocating you, there is a lot of valuable information about canceling moving taxes, the do's and don'ts, what is tax-deductible after the move, etc. Members of the military and family members use Form 3903, Expenses to report their moving expenses and deduct them as an adjustment to income on Form 1040. In addition to eliminating the moving tax deduction, the TCJA also lowered tax rates and doubled the standard deduction. Therefore, it is important to understand how these changes affect your overall moving costs.

If you are planning to move and are looking for the right moving company to help you get to your new location, get a relocation from ARC and let us make your move easier for you. When it comes to calculating your expenses for a move, there are some types of moving expenses that you can claim and they are reasonable such as the use of rental trucks, mileage or gas costs, insurance, packaging and temporary storage. However, if the government provides and pays any of your moving or storage expenses, you should not claim these expenses as a deduction from your taxes.