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Moving your home internationally is often an expensive endeavor. So when this step comes, you will want to do all you can to cut down some costs if possible. Of course, if you get help from international moving companies worldwide movers, you will take a chance to invest your money wisely. Although most international relocation services are not cheap, getting them will allow you to relocate smoothly. This way you will skip many potential complications and simplify your move. But you must be wondering if you could deduct some of your moving taxes. Luckily, we have excellent news and we will help you find out what moving taxes are tax deductible. In case your move is related to work or getting a job in a new location of your current company or employer, stay with us and learn more about tax-deductible moving expenses.
Find out what moving taxes are tax deductible
When you start making a list of the items you need to move abroad, it seems you’ll need to spend a fortune. But when you think about all advantages that come after this step, you are ready to pay for moving costs. So, you will be careful and bring with you only the things you truly need to continue living comfortably in the new country. And with our international moving services, all your belongings will stay safe during the move, regardless of the distance they will need to cross. Now we’ll get back to your budget and help you understand how to manage it in terms of moving expenses. You can deduct your relocation expenses in case your move is related to work and passes time and distance tests. So, if moving for work, just keep reading and learn which criteria allow you to deduct your upcoming expenses.
Tax deductible moving expenses
Unluckily, your employer is not going to pay for your overall relocation costs instead of you. It means you will need to get international moving quotes, move with the help of professionals, and then consider a tax deduction. But once you conduct your move, you should know what moving taxes are tax deductible. If you are trying to deduct your moving expenses for the first time, below you will find simple tips. So, here are some deductible moving expenses you can count on:
- the amount you paid to pack and store your personal items as well as your household goods;
- the amount it costs to travel to your new home from your old home;
- in case you use your own car, you can deduct mileage traveled and expenses you incurred during the move;
- if you use your own vehicle, you can deduct gasoline or oil expenses.
Now that you know which moving taxes you can deduct once the moving is over, planning your moving budget is easier. Although you can not claim the cost of meals during the move, you can deduct many other travel costs such as transportation, lodging along the way, etc. Also, the amount you paid to travel includes costs your will pay your movers, too. In case you do understand that you should protect your items additionally, make sure not to skip this safety step. Since you can deduct packing costs, be free to opt for the most efficient packing solutions such as our international moving crates. Only with top-quality packing supplies and top-notch moving services we provide, your items will stay safe during the long move.
Prepare for your move on time and get enough help
Unluckily, moving home is not all about moving your belongings from point A to point B. There are so many tasks included, and this means you will need enough time to complete them all. Since you need to prepare your items for transport, keep in mind how time-consuming that can be. Instead of trying to do most of the tasks by yourself, enlist help on time. This way your packing will be efficiently conducted and you will get more time for other tasks. One of the important aspects of your move is documentation and paperwork. This aspect includes deductible moving expenses. So, make sure to have enough time to file your claim on time. Save your energy by hiring professional assistance for moving abroad.
What to do to deduct moving taxes
Since relocation expenses are considered adjustments to income, you can count on deductions even if you don’t itemize your deductions. But before you do it, you must meet some of the following tests. The first one is ”closely related in time test”. To pass this test you need to incur the moving expenses within one year from the date you first reported to your new work. What in case you don’t move with the help of household moves within one year of the date you first reported to your new work? Then you can’t count on deducting moving expenses. There is a chance you can get an exception in case you can show that certain circumstances prevented the relocation within that time frame.
Now we are coming to the part where your move must be related to the start of a new job. Of course in a different location. Therefore, the second one is ”closely related in place test” where you need to pass the distance test. The distance from your new job to your new home should be less than the distance from your former home. Since you are moving to another country, you will pass this distance test.
Time matters when you want to deduct your moving expenses. And you can only do it in the year you move. So, wherever you are moving from the United States of America to Europe or any other part of the world, make sure to find out all rules related to tax deductible moving expenses. Even if you know what moving taxes are tax deductible, make sure to file your claim on time. We wish you a smooth move without additional costs and unwanted expenses!