Moving can be a big step in your life. Perhaps you are moving in order to take on a new career. Many people move because they want a bigger house for the kids or a smaller one when they reach retirement age. In some cases, you may just want to be in a better location, near family or someplace warmer when you don’t like the cold. No matter your reason for wanting or needing to move, there are often a lot of costs that can come with the decision and it can take some budgeting to make it all work out for you.
There are a number of things that you can do to limit the costs that you will need to deal with when you are moving. You can choose to shop around to get the best deal, talk to your future employer about taking on the costs if you are relocating for a job, or even downsizing a bit to help. Each of these will make the budget change a bit so you could save money in the long run.
Downsizing Your Possessions
The more items you are trying to move with you, the more expensive the overall move is going to be regardless of if you are moving across town or across the country. Downsizing, even when going to a bigger house, can really make a difference when you need to save some money. This may take some time, but it can cut out the costs and makes it easier to pack and unpack while you are in the process.
Go through your possessions and do some spring cleaning. Decide what you can live without, what is broken, and what you haven’t touched in years. All of this can go out the door. You will be surprised at how much stuff is just sitting around your home that you don’t even use. If you are worried about throwing all this stuff out, just imagine how you will feel having to box it all up and carry it to a new location, and you may find it is easier to throw more items out.
Shopping Around
Do not go with the first company that you find when it comes to moving. There are a wide variety of prices that you can choose from when it comes to moving and it will vary based on how much you need to move, how far you are going, and what extra features you are looking into.
Before you settle on just one company, consider getting quotes from at least two or three people. This is going to give you a good idea of what you are going to have to come up with for the move and you may be able to save a bit of money. This does not mean you should always go with the company that has the lowest price because they may have issues with quality service or not offer all the benefits you would like. But at least you will have the peace of mind knowing that you are getting a good deal.
Having an Employer Foot the Bill
There are many people who are required to move for a new job. They may not have been able to find a new job in their current location or their current boss has requested that they relocate for some reason. Often, if the current employer is asking you to move, they are going to be willing to pay you a bit to offset the costs of moving and you could save a lot of money. Even if this is not discussed right up front, make sure to ask your employer if they are willing to help with some of these costs.
On the other hand, if you are moving to work for a new company, they may not be willing to invest in your moving expenses. This is something that you could discuss before being hired with the employer, but in some cases you are going to have to foot the bill yourself. It never hurts to ask though and you could save quite a bit if they agree.
Claiming a Moving Deduction
In some cases, such as when moving for the military or because of a permanent relocation for a job, you can claim some or all of your moving expenses on your tax return. In order for this to work though, the move must be a permanent one and you can’t have your employer pay off the costs before you deduct them. But if you did have to move for a job and this move is permanent, and the employer did not pay for the moving expenses, the IRS does allow for a deduction that could really help to offset some of the costs that you will experience. If you are curious about whether or not you can get this deduction, make sure to sit down with your local tax professional, and bring in your moving expense receipts, to see how this could work for you.
Moving can take a lot of work. You need to make sure that everything is in order and get to the new location and the costs can make it seem impossible. Make sure to talk with a local tax professional before tax season to figure out whether you can save money on this move through a tax deduction. Contact our offices today and see how we can save you money during tax time.
Patrick O'Hara, EA