Moving can be a stressful and expensive process, but it doesn't have to be. Knowing what to expect and what is included in the cost of a typical relocation package can help you plan and budget for your move. A typical relocation package generally covers the costs of moving and storing furniture, household items, assistance selling an existing home, costs incurred with the search for a home, temporary housing, and all employee and family travel costs to the new location. Hiring professional packers can also help streamline the process and reduce stress.
You may be able to deduct certain expenses associated with moving your household goods and personal effects from your federal income taxes. Examples of these expenses include the cost of packing, packing, transporting a trailer, in-transit storage, and insurance. The cost of a local move is often based on a fixed dollar amount per hour or a flat rate, while the cost of a long-distance move is usually based on the weight of the truck load. When trying to determine if your moving expenses qualify as tax-deductible, the key phrase you should consider is "reasonable costs of moving you and your property".
You can purchase “full value protection insurance” through the moving company to protect your belongings in the event of loss or damage. Members of the Armed Forces must use IRS Form 3903 to claim the cost of moving expenses as a deduction from their federal income taxes. Beyond furniture, if you've moved far away, you may need to stock up your new home with everything from pantry essentials to toiletries. Every year, about 40 million Americans move, so it's important to plan ahead and budget for all potential costs associated with your move.
