How to Get Help With Moving Expenses

Moving involves various expenses, from transportation to setting up a new home. Understanding available financial assistance can help manage these costs and facilitate a smoother transition.

Employer Relocation Assistance

Many employers offer relocation assistance to help new hires or current employees transition to a new work location. These packages ease the financial and logistical stress of moving, especially for moves over 50 miles. Relocation package components vary based on company policy, employee role, and move distance. Common elements include coverage for moving household goods, such as packing supplies, professional moving services, or truck rentals.

Companies may also reimburse travel expenses for the employee and their family, including airfare or mileage. Temporary housing, often for 30 to 90 days, might be covered while the employee secures long-term accommodation. For homeowners, real estate assistance, such as help selling their old home or covering some closing costs, can also be part of the package. Employees can inquire about these benefits through human resources or negotiate them with the hiring manager during the job offer process.

Employer reimbursements for moving expenses are considered taxable income for the employee under current federal tax law. This means the value of assistance, whether a lump sum, reimbursement, or direct payment to vendors, is included in the employee’s wages and is subject to income and employment taxes. The only exception is for active-duty military members, whose qualified moving expense reimbursements are excluded from their income.

Government and Non-Profit Aid Programs

Financial aid for moving expenses is available from government agencies and non-profit organizations. These programs support specific populations, such as low-income individuals, active-duty military personnel, or those affected by natural disasters. Aid may also be available for victims of domestic violence, the elderly, or individuals with disabilities. Assistance can range from direct financial grants or vouchers for moving services to temporary housing support.

Federal programs like Temporary Assistance for Needy Families (TANF) may cover relocation costs for low-income families. The U.S. Department of Housing and Urban Development (HUD) administers Public Housing and Housing Choice Vouchers, which offer relocation assistance for moves to affordable housing. After natural disasters, the Federal Emergency Management Agency (FEMA) can provide emergency relocation assistance, including temporary housing and financial aid. Veterans and their families may access support through Veterans Affairs (VA) programs, including help with housing costs and relocation assistance.

Non-profit organizations also provide moving assistance. Charities such as The Salvation Army, Catholic Charities, and Modest Needs offer financial aid or services to those in need, with eligibility often based on income or specific hardship. Organizations like the YWCA provide relocation support, especially for women and families in crisis. To identify potential sources of help, individuals can contact local government housing authorities, community action agencies, or veterans’ organizations. A helpful starting point is 211.org, a national hotline connecting individuals with community services, including those assisting with moving and housing-related expenses.

Understanding Moving Expense Tax Rules

Federal tax rules for moving expense deductions changed with the Tax Cuts and Jobs Act (TCJA) of 2017. For most taxpayers, moving expenses are no longer deductible on federal income tax returns. This suspension is in effect for tax years 2018 through 2025. Individuals moving for a new job or personal reasons cannot claim these expenses as a deduction from their taxable income.

An exception applies to active-duty members of the U.S. Armed Forces. If a military member moves due to a permanent change of station (PCS) under a military order, they can deduct their unreimbursed moving expenses. This includes moves from home to a first active-duty post, between permanent posts, or from a last post of duty to home upon separation or retirement within specific timeframes. Deductible expenses include travel and lodging for the service member and their household members during the move, though meals are not deductible.

Costs associated with shipping household goods and personal effects, as well as storage fees for up to 30 consecutive days, are deductible for eligible military personnel. These deductions are claimed on IRS Form 3903, “Moving Expenses,” and are treated as an adjustment to income on Form 1040. Only unreimbursed expenses are deductible; any moving expenses paid for or reimbursed by the government that are excluded from income cannot be deducted.

Personal Cost-Saving Measures

Even without external financial assistance, individuals can implement strategies to reduce moving costs. A primary step involves creating a detailed moving budget to track all anticipated expenditures. This budget should list planned expenses, from moving services to packing supplies. Including a contingency fund, typically 5% to 10% of the total estimated expenses, is advisable for unforeseen costs.

Decluttering and selling unwanted items before a move reduces the volume of belongings to transport, lowering costs and generating funds. Online marketplaces, such as Facebook Marketplace or Craigslist, are effective for selling items locally, especially furniture. Hosting a yard sale can also sell multiple items at once without shipping fees. For items that do not sell, donating them to charities can reduce clutter and may offer a tax benefit, though specific rules apply.

For a do-it-yourself (DIY) move, renting a truck and enlisting help from friends and family is more cost-effective than hiring professional movers. When considering professional services, obtain and compare multiple quotes from different moving companies to find competitive rates. Smart packing strategies can save money, such as using free boxes from local grocery stores, liquor stores, or online communities like U-Haul Customer Connect or Craigslist. Utilizing household items like towels and old clothes for padding fragile items also reduces the need for purchased packing materials.

Considering the timing of a move can lead to savings, as moving during off-peak seasons or weekdays often results in lower costs from moving companies. Factor in and manage utility transfer and setup fees, as these add to initial expenses in a new location. Contacting utility providers in advance to schedule disconnections and new connections helps avoid service interruptions and additional charges.