Out of the childhood bedroom for training, in the big city for a new job, in the country to find true love or in the ground floor bungalow in old age? Many a new phase of life begins with a move. But there is usually a lot of time, stress and money between looking for an apartment and the last unpacked box.
At least the tax office can provide some relief when it comes to the financial burden of changing residence. It accepts some moving expenses as tax deductions. How big the discount is depends on the reason for the move.
If you move for professional reasons, you can deduct a lot of moving costs in your tax return. Because these are part of the job costs. With costs for brokers and movers and double rent, employees can easily break the flat rate for advertising expenses:
The tax office takes into account a flat rate of 1,230 euros per year for each employee as professional costs – without any evidence. If you spend more on the job, including expenses for a job-related move, you can also bill more. This is certainly easy for most people who change their place of residence, because the expenses for a move add up quickly.
When looking for a new place to live, taxpayers can claim expenses for brokers, advertisements and fees from online real estate exchanges. This applies to professional moves. The costs of up to two viewing appointments at the future place of residence also count. Travel costs as well as food and hotel are taken into account for the trips.
If there is no smooth transition between two residences, the tax office will impose double rent. Taxpayers calculate the rent for their new home for the period from the termination of the old tenancy until the day they move out. You bill the rent for the old apartment for the time between moving out and the end of the notice period. If there is a dispute with the old landlord about the end of the contract, you can claim legal fees and legal costs.
A lot comes together on the day of the move: If you rent a car or hire a moving company for furniture and household goods, you deduct the transport costs. For your own journeys by car, a flat rate of 30 cents per kilometer counts, for public transport the actual costs.
If household items are lost or broken while on the move and no insurance is available, people moving house will be charged the replacement costs.
Taxpayers deduct a meal allowance for food and drink on the day of the move, depending on the absence from the old home. There is up to 28 euros per person moving. For 2024, the value could increase to 32 euros if the Growth Opportunities Act is passed. If it is not yet possible to stay overnight in the new home, hotel costs also count.
In some cases where families move because of a parent’s new job, children subsequently have difficulty keeping up with school. That’s why the tax office supports tutoring so that children can catch up on the lessons: for moves in January and February of this year, officials recognize tutoring costs of up to 1,181 euros per child, and for moves from March onwards it is 1,286 euros.
Of course, the following applies to all expenses: keep invoices. These no longer have to be submitted with the tax return, but the tax office may ask for evidence later.
In addition to the items that fit into the budget, there are also small expenses, such as cosmetic repairs, dismantling and connection costs for stoves or washing machines, re-registration costs or tips for furniture movers. People moving can use this to keep records for the tax office. Or you can save yourself the hassle of collecting receipts and bill such small expenses at a flat rate.
The moving flat rates will increase for moves from March 2024: Everyone who moves for the job can then claim a flat rate of 964 euros for other moving expenses. So far the value is still 886 euros. For all people moving with you, mostly partners and children, there is an additional 643 euros each. For moves by the end of February 2024 it is still 590 euros.
And if you didn’t have an apartment before moving or are giving up your apartment when moving, you can expect 193 euros in the future instead of just 177 euros. The deadline for the amount of the flat rate is the day before the furniture and household goods are loaded.
By the way: A professional move doesn’t just happen when you move from one place to another to change jobs. Even if the change of residence significantly shortens the travel time to work, it may still be a job-related move. In order for the tax office to cooperate, the travel time should be shortened by at least an hour. Here the outward and return journey counts together. A time saving of 30 minutes is enough for each journey.
Some illnesses are so restrictive that it becomes necessary to move, for example to a ground-floor apartment or a house suitable for disabled people. When moving due to illness, the costs incurred are considered extraordinary tax burdens. Here too, verifiable expenses for transport, finding accommodation and double rent count. However, sick people must justify that their illness is the reason for moving. The tax office checks.
In addition, sick people who change residence have to bear part of their own costs. Your own contribution, i.e. the reasonable burden, depends on your income and marital status. Although movers report all of their costs in their tax returns, the tax office only takes expenses that exceed this limit into account as a tax reduction.
Anyone who moves in with their partner, moves from an apartment to their own home or is looking for a new home for other private reasons receives little support from the tax office: they deduct the costs of transporting furniture as household-related services and expenses for assembling furniture or painting work are considered craftsman’s costs.
Important: An invoice must be issued for the services provided and customers must pay the amount by bank transfer. The tax office then deducts 20 percent of the costs directly from the tax burden.
This article first appeared in the business magazine “Capital”, which, like stern, is part of RTL Deutschland.
