Are Relocation Expenses Tax Deductible? 

Whether it’s simply across town or to an entirely different city, relocating for work can be an exciting yet challenging experience. You may also have to cover a variety of expenses such as moving your belongings, temporary housing, and transportation costs, which begs the question: Are relocation expenses tax deductible?  

In this blog, we’ll deep dive into relocation expenses and whether or not they’re tax deductible in order to help you understand when and how you can potentially deduct relocation expenses. 

What are Relocation Expenses? 

So, what exactly are relocation expenses? Relocation expenses are the costs associated with moving to a new location for work-related purposes. These expenses can be quite diverse and may include a variety of costs and factors, including: 

  • Transportation and travel expenses: Costs related to getting to your new job location, such as airfare, train tickets, and gas for your car. 
  • Moving expenses: Fees for professional movers, packing materials, and the transportation of your personal belongings. 
  • Temporary lodging: Costs for temporary housing or hotels while you search for a permanent residence. 
  • Storage costs: Expenses associated with storing your belongings during the transition. 
  • Home sale or lease-breaking costs: Fees incurred when selling your old home or breaking a lease on your rental property. 

Four Possible Tax Deduction Examples 

While a majority of relocation expenses are no longer tax deductible for most individuals, there are a few expenses that can still qualify for general deductions and is worth looking into.  

Military Moves 

Active-duty military personnel may be eligible for deductions related to their service-related moves, so it’s important to speak to your senior leadership regarding your moving expenses. 

Self-Employed Individuals 

If you are self-employed, some relocation expenses might be considered ordinary and necessary business expenses and could be deductible. Be sure to consult with a tax professional in order to determine eligibility. 

Employer Reimbursements 

In some cases, employers might offer relocation packages that include reimbursements for certain expenses.

State Tax Rules 

While federal moving expense deductions have been suspended by the Tax Cuts and Jobs Act (TCJA), some states have their own rules and regulations regarding deductions for moving expenses. It’s important to check the specific tax laws in your state. 

Let Beltmann Relocation Group Make Your Move Seamless Today 

Experience a stress-free, seamless relocation with the team at Beltmann Relocation Group. Our dedicated team is here to ensure that every aspect of your relocation is handled with care and precision, helping make your complex moves simple. 

Trust us to expertly manage the details, so you can focus on starting your new journey with ease. Let Beltmann Relocation Group be your partner in making your move effortless and worry-free today. To get started, please contact us today!