Writing Off Moving Expenses on Your Taxes: Rules and Regulations

Are Moving Costs Tax Deductible in 2021?

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Do you want to know how to write off moving expenses on your taxes? Many people are trying to find ways to save more money and writing off moving expenses is one way. With the recent changes in tax law, there has been confusion about what qualifies for a deductible expense. This blog post will help clear up any questions you have and give you some tips on how to make sure that the IRS doesn’t catch your deductions as fraudulent.

Unfortunately, Moving Expenses Are Not Tax Deductible For Most People

Moving expenses are not tax deductible for most people. There is an exception, however: if you work in the military and your move was due to a permanent change of station (PCS) order or deployment orders; then those moving costs can be deducted from taxes as well!  The rules about what constitutes “reasonable” deductions vary by state and locality.

Why are Moving Expenses No Longer Deductible?

Due to the Tax Cuts and Jobs Act (TCJA) passed in 2017 by President Trump, most people can no longer deduct moving expenses on their federal taxes. This aspect of the tax code is pretty straightforward: If you moved in 2020 and you are not an active-duty military member, your moving expenses aren’t deductible.

The TCJA also suspended the deduction for unreimbursed employee expenses, which includes moving costs that are not reimbursable by an employer or other third party (such as a government agency).

The suspension of this provision is temporary, so it may return for tax years beginning after January 2021 depending on when Congress decides whether they want these provisions back and if President Biden signs off (which he may not).  If you would like to see these deductions return, you can contact your congressional representatives and let them know.

Can you deduct the cost of new furniture when moving?

No.  The TCJA suspended the deduction for unreimbursed employee expenses, which includes moving costs that are not reimbursable by an employer or other third party (such as a government agency).   If you would like to see these deductions return and have your furniture deducted on taxes again in 2020-2021 tax years then contact your government representatives.

Can you write off moving expenses 2020?

Only if Congress decides to reinstate the moving expense deduction.  If you would like these deductions back and have your furniture deducted on taxes again in 2020-2021 tax years then contact congressional representatives of both parties (Republican or Democrat) who represent where you live now.

Are moving expenses likely to return to being tax deductible in 2021?

It is possible but not likely.  If you would like these deductions back and have your furniture deducted on taxes again in 2021-2022 tax years then contact congressional representatives of both parties (Republican or Democrat) to let them know how important these issues are for their constituency, as well the importance it has nationally for the mobility of our citizens.

Which states allow moving expense deduction?

The following states allow moving expense deductions:  Alaska, Florida and Nevada. The District of Columbia also allows for this deduction but it is unclear if the federal government will recognize these expenses as a tax write-off in 2020 or 2021 due to recent changes made by Congress on December 18th 2018 that eliminated many other types from being deductible.

How to deduct charitable donations?

It’s common to donate valuable items to charity before a big move. This is a great way to reduce the amount of items you have that need packing and transporting. The IRS has strict rules about what can be deducted as charitable donations, so it’s important for taxpayers who are considering this option before their move to do their research.

A good rule of thumb is to make sure you donate only those things in good condition that would sell at fair market value and deduct the value from your taxes.

No matter what, Treasure Moving Company recommends you consult your tax professional for details on how to deduct at tax time.

Are you looking for a residential moving company?

Call Treasure Moving Company at 855-715-6683 or fill out our form online for a free moving quote.