A Comprehensive Guide to Moving Expenses Tax in 2024

If you have to change your place of residence for professional reasons and you have to move, you can claim the moving costs as tax deductions. So you can deduct your move from your taxes with income-related expenses. You can find out here how this works and what you need to consider when it comes to moving and tax returns

Moving costs tax – deduct the move from tax, but how?

Regardless of whether you are changing your place of residence for your new job, for personal reasons or because you want a change – if you move, you have to dig deep into your pockets. Good to know that the tax office provides financial support for this. Moving costs for taxes can be deducted as business expenses in the tax return.

• In order to claim the moving costs in your tax return, enter them under the business expenses in Appendix N and in the household-related services in the appendix “Household-related expenses”.
• By the way, tax returns are easier using the app.
• The Federal Relocation Costs Act provides the legal basis for this.
   

Deduct your move from tax – professional reasons for the move

What is considered a professional reason for moving? In the following cases you can deduct your move from tax.

• You will need at least half an hour less to get to work after moving than before. So it’s about saving time.
• They were transferred from the company.
• The move is primarily in the operational interests of the employer.
• Working conditions improve due to the move. This is recognized at least in individual cases.
• Returning after a longer stay abroad.
• The job was changed for professional reasons and it was therefore necessary to move to another city.
   

Moving costs in the tax return – which costs can be deducted?

One thing in advance: It is important that you keep the receipts for the moving costs for your tax return. Some costs can also be recorded as a flat rate and can simply be deducted from taxable income.

• 30 cents per kilometer to view the apartment
• Fees for the broker, but only for rent
• Double rental payments for a period of up to 6 months
• Costs for moving services, costs for moving with moving companies
• Costs for 3 months’ rent if the apartment cannot be moved into immediately
• Travel costs to the new place of residence
• Other moving costs as a flat rate without receipts. This includes feeding the helpers, tips, cosmetic repairs to the old apartment, installing a kitchen, installing appliances, re-registering telephones and cars; Attaching lamps etc.
   

However, furniture and other furnishings as well as the storage of furniture during the transition period are not deductible.

Tax-deductible private moves

Can a private move also be deducted from tax? Under certain circumstances, yes. This point has already been explained above. This is the case if the distance from the home to the workplace is significantly shortened by the move. A reduction of at least one hour per day is estimated. If this is the case, you can also deduct a private move from your taxes and claim it on your tax return. The flat rate for moving costs also applies to a private move.

Furthermore, the new tax deduction options for moving costs will be published on March 1, 2024.

Tax deductions for moving services

You can claim moving expenses for taxes if you use a professional moving company. Moving with a moving company is much more relaxed than if you do the move entirely on your own. We know what we are talking about because we are moving professionals! If you want to arrive relaxed at your new place of residence and concentrate on the essentials so that nothing stands in the way of your new start, hire a professional moving service because it saves time and nerves. Please contact us for a non-binding offer.