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How tax reform affects IRS moving deductions

Verified Movers Team Blog Industry News

Moving can be stressful and it can cost you some money too. The moving expenses can be high and even if some moving companies are more affordable than the other, overall expenses reach a couple of hundreds of dollars at least, so you need to get the moving deductions. It is depending on how far away are you moving to since short distance moves will cost you less than long-distance or interstate. If you are moving to another continent, expenses can be really high. Also, you can hire a long-distance moving and packing service or just the moving service. There are other services you can get too, and it depends on how much money you need on what services you will hire. This is why you want to get your money back on tax refunds if that is possible.

What can you expect when it comes to moving deductions?

If you moved in 2017. and before you can get a full tax refund. Taxpayers could deduct eligible moving expenses from the taxable income by reporting on form 1040. There are no limits when it comes to moving deductions if you make all of the requirements. This does not work if you are trying to get a refund of the expenses that your employer pays for. And if you moved in 2018. or 2019., the tax refund is pretty unlikely. But there are some things you need to know if you moved lately. The IRS allows tax refunds in some cases but you need to be aware of the IRS tax reforms. In case you have deductible moving expenses that you want to refund, there are some demands you need to fulfill if you want to get the money back.

Moving deductions- a person doing taxes
If you moved recently, make sure to look for moving deductions

2018. and later moves might be refundable

Moves after 2018., if they are work-related, might be refundable. You need to be able to prove IRS that you moved in order to be able to work. Eligible tax can be deducted on the cost of:

  • Professional packers and movers, like hiring Verified moves so you can have a stress free move
  • Cost of renting the moving truck
  • Packing supplies
  • Insuring belongings during the move
  • Transferring your utilities
  • Moving your car to the new place of residence
  • Storage unit for 30 days after the move
  • Temporary lodging can be refundable moving deductions
  • Gasoline oil, parking fees, tolls, and other transportation expenses.
  • Work is the reason for the move? You might be able to get tax refunds.

All of these expenses can be deducted if you are able to prove that you had to move for work. Remember, if your employer paid for any of the moving expenses, they are not moving deductions, so you can’t get refunds on them. Also, it must be necessary for you to hire movers or the moving truck, or any other thing from the list so it can be a moving deductable If you spend money on any of the things on the list and it wasn’t necessary, you will not be able to get your money back.

Moving deductions
Hiring movers and packers, hiring a moving truck and some other services can be deducted

The Form 1040

This is the form that you must fill in order to even apply for the moving deduction. If you are asking yourself – can I claim my moving expenses, make sure you get as informed as you can. This is just one of the requirements. You will have to be able to prove that you moved for the job by being able to pass the three tests regarding your old home and the work.

The form 3903

It’s the for that is used for requesting shipping and storage costs to be refunded. Also, travel, lodging and gas costs are included in it. If your employer paid for any of the expenses, you will be able to state so in this form.

When it comes to moving for work, there are some requirements to consider

Obviously, you can’t just get the service that you want and get a refund on it. it is necessary to have a reason for hiring movers or the moving truck or the storage unit and ask for a refund. You need to have a reason for hiring any of the services. For example, you might be able to load the moving truck by yourself, and not hire the movers at all. There are the requirements you need to meet so you can get the moving deductions.

Moving boxes
If you can pack by yourself but you hired packing assistance, you might not get the refunds

The time requirement when it comes to moving deductions

When it comes to moving for work, you must be able to prove it. To get a possibility of the tax refund, you must be working for at least 39 weeks over the 12 months after the move. There are some situations that are exceptions, like if you move after the first day of work because of the spouse and children. This only counts as legitimate if they are finishing school or getting medical assistance of some kind. In these situations, you can ask for moving deductions.

The necessity of the services and expenses

If you are trying to get your money back, you need to know that your money will be repaid in case it was reasonably spent. It is important that you are able to tell what are normal moving expenses. Movers are able to let you get a free moving estimate online so make sure you use it before the move to find the most affordable movers. Getting movers and packers, a moving truck and so on is normal and you will be able to get your money back.

The distance test

When it comes to moving deductions, in order to get repaid for the job-related move, you must be able to prove that your new working place is more distanced from your old home than your previous workplace, and by 50miles. So if your new job as far as your old job, plus 50miles further away from your old home, you can get a moving deduction. For the military staff, the move is going to be deducted no matter the distance. If they are getting retired or changing the status of their service in any way, they will get the moving deduction no problem.

A man in a tie
If you moved for a job, you need to be able to prove it


Once you fill out all the forms and are able to prove that you indeed had to move for the new job, you will easily get the moving deduction so you should not worry. Just make sure not to use the services that you don’t really need. Try not to move if you can’t prove you had to. Anything that your employer pays for must not be repaid. And make sure you fill out the forms correctly.

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