New Faculty Hire friends (like me) or anyone moving for a new job -just a reminder that “for tax years 2018 through 2025, the deduction of certain moving expenses is suspended for nonmilitary taxpayers”(IRS). Employer reimbursements/allowances will be taxed as income, so plan accordingly.
For example – let’s say you get a job in CA and you’re moving from GA- If the Uni gives you $20,000 moving allowance the $20k is considered taxable income. So if the tax rate is 35% you only have 20k-(35% of what you need) for moving – this is important for avoiding future financial stress. Ask your employer if they will gross up.
Here are some costs to consider related to moving DIY or hiring a moving company
* IMPORTANT: Do not be the friend who asks friends for moving help unless you are in grad school or undergrad. Moving sucks – unless folks volunteer do not do it.
- Moving companies tend to charge anywhere between $115 and $200 per hour for packing and any moving help
- You may have to pay extra for boxes – I was recently informed that if we do not have the original box for our TV, we will need to pay $25
- You may have to pay extra depending on the set up of your new home so you will need to have all that information ready before you sign a contract with a moving company
- If you are going the DIY route compare costs of various companies UHAUL, PENSKE, and some car rentals, e.g., the enterprise now offer moving trucks
- You want a truck with moving rails
- You will want carts * spend the extra $ your back will thank you later
- Get a truck one size up than what you think you need
- Car Movers – If you are moving from one end of the country to the next, it might be cheaper to have your car shipped. Then you can fly to your new home. Do the math on gas and fatigue + lost love if you will be spending 20 hours in the car with your family.
- Storage- depending on your situation, you may need to store some things. Costs range from $50 to $200 per month depending on size and location
https://www.irs.gov/publications/p521#en_US_2018_publink1000203444
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