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Deduct moving costs from tax
Deduct moving costs from tax

Video: Deduct moving costs from tax

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Video: Can I Deduct Moving Expenses? | simpleetax 2023, February
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Every move costs money. You can deduct at least part of the moving costs from the tax. If professional reasons necessitate a change of residence, the tax office contributes particularly heavily to the expenses.

Table of contents Table of contents Deduct moving costs from tax: The state pays

  • Deduct moving costs as advertising costs
  • Tax flat rate for moving costs
  • Reasons for moving
  • Relocation due to extraordinary burden
  • Craftsman and household services
  • Deducting moving costs: tax tips from the experts

Table of contents Table of contents Deduct moving costs from tax: The state pays

  • Deduct moving costs as advertising costs
  • Tax flat rate for moving costs
  • Reasons for moving
  • Relocation due to extraordinary burden
  • Craftsman and household services
  • Deducting moving costs: tax tips from the experts

If you moved in the past year, you can deduct your moving expenses from tax. The tax office recognizes many expenses, but differentiates between relocations for professional reasons and private removals.

Deduct moving costs as advertising costs

Insofar as professional reasons were decisive for the move, the employee bills his removal costs as advertising costs in Appendix N of the tax return. As soon as the lump sum of 1, 000 euros is exceeded, each additional euro reduces the tax burden. When moving for professional reasons, it is therefore worthwhile to collect documents diligently and submit them with the tax return.

You can deduct from the tax:

  • Expenses for finding an apartment (e.g. brokerage fees)
  • Expenses for the company that was entrusted with the move
  • Spending on a new stove (up to 230 euros)
  • Travel expenses incurred during the move (30 cents per kilometer or actual costs)
  • Food costs on the day of the move (flat rate up to 24 euros per household member)

There is also tax compensation for moving costs for those changing homes who temporarily had to pay double rent when moving. And if the children received tuition after the move, the tax authorities recognize a large part of the invoice amount (maximum 1, 984 euros *). "The way in which you can deduct moving costs is derived from the Federal Moving Costs Act, " explains Tobias Gerauer, tax consultant and head of the legal department of the income tax assistance in Bavaria. Taxpayers must list and add the items mentioned in the tax return. In addition, employees can still use the flat rate for moving costs. Gerauer comments: "This is intended for all the little things and additional costs that add up when you move: for example tips for furniture packers, the re-registration of the car and the rewriting of the ID card."

Tax flat rate for moving costs

For married and single parents, the moving cost flat rate is 1, 573 euros - plus 347 euros for each additional household member. The flat rate for moving costs for singles is 787 euros. Those who have higher expenses can bill individually. However, no new furniture belongs to this list because the tax authorities do not reimburse so-called costs of private living. And: "If your employer has already paid a tax-free subsidy, deduct this amount from the advertising costs, " adds the expert.

Reasons for moving

Grafik: Gründe für den Umzug
Grafik: Gründe für den Umzug

Multiple answers possible, figures in percent, percentages based on 520 respondents, figures in percent.

Photo: LBS

Relocation due to extraordinary burden

Only in exceptional cases can the various flat rates and moving costs be deducted from tax after a private move. And only if the move had to be done for health reasons. In this case, sick people should get an official medical certificate before moving. In the tax return, you then enter the expenses in full as extraordinary charges. However, they only have an impact if the individually reasonable burden is exceeded.

Craftsman and household services

There are even chances of tax benefits if there are no professional or health reasons for moving. If you move privately with the help of a freight forwarder, you can deduct 20 percent of the moving costs: The tax authorities consider packing the belongings and transport to the new apartment as a household service. For this, he grants a tax discount of up to 4, 000 euros per year. However, cash payments endanger the tax bonus on the move. Customers should therefore clarify in advance that they can pay the invoice by bank transfer, crossed check or EC card.

The dismantling and assembly of the furniture is one of the tax-privileged craftsman services. The following applies here: 20 percent of the labor costs are tax-deductible, up to a maximum of 1, 200 euros. "This division allows taxpayers to draw from two pots, " says the expert. Craftsman costs often add up quickly to the maximum amount, especially if the move still needs renovation. Incidentally, there is no tax bonus for new construction measures - except for residual work after moving in.

Deducting moving costs: tax tips from the experts

The tax consultant Tobias Gerauer knows other tax tips to claim moving costs:

“Anyone who rents a second home at work because of the job can deduct the moving costs as part of their advertising costs, against individual proof. In addition to the cost of moving, the Treasury reimburses additional catering expenses in the first three months of double housekeeping. With a flat rate of 24 euros per day, a lot comes together. In addition, you can claim your current expenses for tax purposes: the tax office recognizes one trip home per week and costs for accommodation of up to EUR 1, 000 per month - for rent, utilities and radio fees, for example. It is disputed whether furnishings and household items are part of the accommodation costs or count separately. A judgment is expected later this year. You can find the current status on the website of the Federal Ministry of Finance by searching for the file number VI R 18/17.

However, the tax bonuses only exist if the center of life is actually in the home town - the main place of residence is therefore decisive for the transfer of the moving costs. If your partner lives there with a child, this is usually out of the question. Singles have a harder time; membership in an association or an honorary post will probably convince the tax office. Another criterion is the cost sharing of the first home."

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