How to Get Money for Moving Expenses

Moving involves various expenses, from packing supplies and transportation to temporary housing and utility connections. Understanding how to secure funds for these costs is important for managing the relocation process.

Employer-Provided Moving Assistance

Many employers offer relocation assistance to help new hires or transferring employees move for work purposes. These packages are designed to alleviate financial and logistical stress, aiming for a smoother transition into a new role. The components of such assistance can vary significantly based on company policy, the employee’s position, and the distance of the move.

Common types of employer aid include direct reimbursement for specific expenses, lump-sum payments, or direct payment to moving companies. Direct reimbursement often covers costs like professional moving services, packing and unpacking, and transportation of household goods. Some companies may also cover travel expenses to the new location, temporary housing for a period of 30 to 90 days, or assistance with real estate costs such as selling an old home or breaking a lease. Lump-sum payments provide a set amount of money to the employee, offering flexibility in how the funds are used for moving expenses. Direct payment to vendors means the employer handles the billing directly with service providers, streamlining the process for the employee.

To determine if an employer offers moving assistance, individuals should review company policies, which are often found in employee handbooks or on internal HR portals. Contacting the human resources department is a direct way to inquire about available benefits and eligibility criteria. Employees should gather information about their employment status, the nature of the move (e.g., new hire, internal transfer), and any specific needs, such as family relocation or international considerations. Understanding these details helps assess eligibility and pursue assistance.

Government and Community-Based Financial Aid

Various government agencies and non-profit organizations provide financial aid for moving expenses, particularly for individuals and families facing specific circumstances. These programs recognize that relocation costs can be substantial, especially for those with limited financial resources. Eligibility for assistance is based on factors like income, family size, specific needs, and residency.

Federal programs, such as those from the U.S. Department of Housing and Urban Development (HUD), offer assistance for individuals moving to affordable housing through public housing or Housing Choice Vouchers. The Emergency Solutions Grants (ESG) program, supported by HUD, provides financial aid for those at risk of homelessness, including relocation costs. The Federal Emergency Management Agency (FEMA) offers financial help for moving costs and temporary housing to individuals displaced by federally declared disasters. For veterans, the Department of Veterans Affairs (VA) provides housing assistance and other relocation support, with some programs like the Rural Relocation Benefit offering grants for moving expenses for qualified veterans pursuing education.

Non-profit organizations and charities play a significant role in providing moving assistance. Organizations such as The Salvation Army, Catholic Charities, Modest Needs Foundation, and the YWCA may offer financial aid or logistical support for moving and housing needs. These organizations assist specific demographics, including low-income families, women and families in crisis, or individuals experiencing housing instability. To research and identify such programs, individuals can utilize online directories like 211.org or Benefits.gov, which list various government and community resources.

Applicants need to provide documentation to verify eligibility. Requirements include proof of income, such as pay stubs or tax returns, to demonstrate financial need. Proof of residency, like utility bills or lease agreements, and identification documents are also required. Depending on the program, additional evidence of need, such as an eviction notice or documentation of a specific crisis, may be necessary.

Personal Financing Strategies

Individuals can leverage personal financing strategies to cover moving expenses, utilizing various financial products and existing assets. These options provide direct access to funds, although they come with specific considerations regarding interest rates, repayment terms, and potential impacts on credit scores.

Personal loans offer a lump sum of money that can be used for moving costs, and they can be either secured or unsecured. Unsecured personal loans do not require collateral, while secured personal loans might require an asset, like a car or savings account, as security. Interest rates on personal loans vary based on creditworthiness, and repayment terms range from one to seven years. Lenders assess an applicant’s credit score, income, and debt-to-income (DTI) ratio to determine eligibility and loan terms. A DTI ratio compares monthly debt payments to gross monthly income, with lenders often preferring a ratio of 36% or less, though some may approve up to 50% depending on the loan type.

Credit cards can be used for moving expenses, offering convenience and, in some cases, rewards. Many credit cards provide introductory 0% Annual Percentage Rate (APR) offers on new purchases, allowing a period to pay off expenses without accruing interest. However, if balances are not paid within the introductory period, regular interest rates, which can be high, will apply. Lines of credit, similar to credit cards, allow access to a revolving pool of funds up to a limit, with interest charged only on the drawn amount.

When pursuing these financing options, lenders require financial information and documentation. This includes government-issued identification, proof of address, and verification of income through pay stubs, W-2 forms, or tax returns. Lenders review an applicant’s credit history and may request bank account details for fund disbursement and repayment. Utilizing existing savings or investments can provide funds without incurring debt, though this means liquidating assets that might otherwise grow.

Tax Implications of Moving

Understanding the tax implications of moving expenses is important, as federal tax laws affect how these costs are treated. For most taxpayers, the ability to deduct moving expenses on federal income tax returns has been suspended. This suspension, enacted by the Tax Cuts and Jobs Act (TCJA) of 2017, is in effect through 2025.

There is a specific exception to this rule for active-duty military members. If a move is due to a military order and a permanent change of station, active-duty military personnel can still deduct unreimbursed moving expenses. These deductible expenses for military members can include costs for transporting household goods and personal effects, storage fees for up to 30 consecutive days, and travel expenses to the new home, excluding meals. Military members who qualify for this deduction report it on IRS Form 3903, Moving Expenses.

Employer-provided moving assistance is treated as taxable income for employees. This means that any benefits received from an employer, whether as a lump sum, direct reimbursement, or direct payment to vendors, must be included in the employee’s taxable income. Employers are required to withhold income tax on these amounts. While this increases an employee’s gross income, some employers may offer “tax gross-up” payments to cover the additional tax liability, ensuring the employee receives the full intended benefit of the relocation package.