Moving to or from Woodland, CA, is an exciting milestone, but it also comes with its fair share of expenses. Whether you are relocating closer to Main Street or moving out of Yolo County for a new job, budgeting for your move is essential.
A common question we hear at Moving With Grace is about tax time: How can I claim moving expense deductions to offset my relocation costs? Here is what every Woodland homeowner and renter needs to know about writing off their moving costs.
Federal vs. California State Tax Rules
When you want to claim moving expense deductions, you have to look at both federal and state laws, as they currently have very different rules.
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Federal Taxes (IRS)
Under recent federal tax guidelines, the deduction for moving expenses is heavily restricted. Currently, the only taxpayers who can claim moving expense deductions on their federal tax returns are active-duty members of the Armed Forces who are moving due to a permanent change of station (PCS). -
California State Taxes (FTB)
Here is the good news for Woodland residents: California law does not conform to the federal suspension of moving expense deductions. If you are filing state taxes in California, you may still be able to claim moving expense write-offs if you meet two specific requirements:
- The Distance Test: Your new workplace must be at least 50 miles farther from your old home than your old workplace was.
- The Time Test: You must work full-time in the general area of your new Woodland (or new destination) location for at least 39 weeks during the 12 months right after you move.
What Qualifies as a Deductible Moving Expense?
If you meet the California state requirements (or the federal military requirements), you can generally deduct the reasonable costs of:
- Hiring a professional local or long-distance moving company.
- Packing and crating your belongings.
- Moving your personal goods and household items.
- In-transit storage for up to 30 consecutive days.
Disclaimer: We are moving experts, not CPAs! Tax laws can change, so we always highly recommend consulting with a certified tax professional or accountant in Woodland before filing.
Make Your Woodland Move Seamless
Whether you are moving across town or across the state, dealing with taxes is stressful enough—your actual move shouldn't be. Keep all your invoices and receipts organized, and leave the heavy lifting to the pros.
At Moving With Grace, we provide transparent, itemized receipts for all our residential moving services, making it easy to hand your paperwork over to your accountant.
