Moving across state lines or across the country is a big endeavor, physically and financially. Scrimping and saving in little ways -- like re-using boxes and using a friend's garage for storage – will make the move more affordable. However, there are three bigger ways you can make your big move more financially feasible. Here's a look.
Save your receipts for tax deductions.
If you're moving for a new job, then you can deduct the cost of your move on your federal income taxes. So save your receipts for everything from packing materials to moving company fees. How much can you expect to save? Well, that depends on your income tax bracket. If you're in the 25% tax bracket, you won't have to pay the 25% tax on your moving expenses. This can add up to hundreds of dollars in savings on a big move. To ensure you deduct everything properly, hire an accountant or tax preparer. They'll know what you can and cannot deduct, which will vary based on your unique situation. Some states also offer tax deductions and credits for moving. Again, your accountant will know the specific rules in your state.
Negotiate with your employer.
Some employers routinely cover all moving expenses with no questions asked. Other do not – but they are surely familiar with the fact that other companies do offer their employees this benefit. If your company has not offered to cover the cost of your move, or if they've only offered to cover a percentage of the costs, be aware that you can negotiate this deal. Remind your employer how dedicated you are to the company and that you're picking up your whole life to relocate for your job. Tell them that you're concerned about the financial impact of the move, and then propose what you'd like them to cover. If they were initially not offering to pay your expenses at all, propose that they pay 50%. If they're currently only paying 50%, see if they'll agree to 75%.
Tackle it all at once.
Moving your car this month, your items in storage next month, and your spare furniture next month may seem like a good idea since it spreads costs out. However, you'll often end up paying more in the long run when you spread moving tasks out. You'll end up having to pay for multiple truck rentals, several moving helpers, etc. Tackling the entire move at once will usually save you money since you won't be doubling up on costs. Plus, moving companies often offer discounts on packaged services, which can reduce your bill.
For more information, contact a local movers company.Share