Claiming Texas Moving Tax Deductions
Navigating taxes is already tricky enough as it is, even more so when you factor in expenses and deductions. Most people don’t even realize you can claim moving expense tax deductions if you or your spouse are military personnel managing a permanent change of station (PCS). Our North Texas corporate relocation team at Firehouse Movers helps you understand how to claim moving expenses without getting bogged down by complex tax laws. While it isn’t overly complicated, claiming moving expenses for tax deductions does require you to meet the eligibility criteria and fill out the necessary Texas tax forms, paying careful attention to detail.
Are Moving Expenses Tax Deductible?
Yes, moving expenses can be deductible, but this is only applicable to certain military personnel under specific circumstances. To qualify for this deduction, you must have paid for the move out of your own pocket. If your moving expenses were covered by the government, those costs won’t be deductible. Additionally, if you were reimbursed for more than the actual cost of your move, the extra amount is considered taxable income and must be reported on your tax return.
When you’re ready to claim moving expense tax deductions, you’ll need to use IRS Form 3903. This form is specifically designed to help you calculate your tax deductions for moving. Moving can be stressful enough without the added worry of tax complications, so taking the time to get everything in order will give you peace of mind.
Requirements for Tax-Deductible Moving Expenses for PCS
When it comes to claiming moving expenses on your taxes, your eligibility for deductions depends on the moving services required as well as who was financially responsible for it. By understanding these key factors, you can ensure that you’re making the most of the available tax benefits of moving to Texas as a member of the military.
What PCS Moving Expenses Are Tax Deductible?
Here’s a list of moving-related expenses that you can potentially deduct:
- Rental of moving trucks or trailers
- Professional moving services such as packing or crating
- Gasoline, tolls, and parking fees
- Airfare, if applicable
- Lodging, with certain limitations
- Storage costs for up to 30 days
- Insurance
What Moving Expenses Are Not Deductible?
Not every moving expense qualifies for a deduction. Here’s what you can’t deduct:
- Mealing during the moving process
- Extravagant lodgings
- General repair, maintenance, insurance, or depreciation of vehicle
- Car tags
- Driver’s license
- Expenses involved in the process of buying or selling a home (including closing costs, mortgage fees, and points)
- Any part of the purchase price of the new home
- Expenses of entering into or breaking a lease
- Home improvements to help sell previous home
- Loss on the sale of previous home
- Mortgage penalties
- Real estate taxes
- Refitting of carpet and draperies
- Return trips to previous residence
- Security deposits
While many expenses won’t be moving tax deductions, it’s essential to know which costs qualify and which do not. By being informed and prepared, you can navigate the complexities of tax season with confidence and potentially save money in the process as a member of the military.
Get in Touch with Our Texas Moving Company
Relocating and claiming moving tax deductions, can be a challenging process, but with the right guidance and support, it doesn’t have to be overwhelming. Whether you’re organizing your garage, relocating to a new home, or planning a commercial move, having access to expert advice and reliable moving services in Texas can make all the difference. For more tips and information on making your move as smooth as possible, be sure to explore our moving blog. And if you ever need assistance, don’t hesitate to reach out—we’re here to help with whatever you need to make your move a success.