How much will it cost?
That would probably be question number one a person planning to move would ask.
The cost of moving is not a simple question. Whether your employer is paying for your relocation, or you plan to cover it from your own pocket - the following topics will help you better understand the financial side of moving:
1. Budgeting your move / U-Haul
2. How to save on your move / U-Haul
3. Getting the right estimate
4. Tipping the movers
5. Deducting moving expenses from your taxes
Budgeting your move
It is important to establish a budget for moving expenses as soon as you decide to move. List all the expenses that might occur before, during, and after the move. If you decide to hire a professional moving company you need to estimate the cost of your move.
The cost of moving when you hire a professional mover depends on several factors:
· The weight of your move. The more weight, the more cost.
· The number of miles you're traveling and the states of your old home and your destination. Some carriers only serve certain states.
· The time you decide to move.
· How easy is the access to your home or apartment.
· Packing and unpacking requirements.
You should expect paying more for your move during peak times. Moving industry is usually busier during:
· The summer. It is usually cheaper to move between October and April
· Holidays
· Last week of each month (especially last day) and first two-three days
· Weekends
· During the summer middle of the month is also a busy period
When planning the budget for your move, don’t forget additional costs that you might incur. Those costs include:
· hotel room, if you will need a place to stay while your belongings are in route
· car rental if you will be shipping your car
· utilities fees for shutting off or turning on existing or new services
· a tip for the movers
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How to save on your move
Here are some tips on how to save on your move:
Self Movers: The more work you are willing to do, the less your move will cost. For instance, if you are willing to pack and load and unload your belongings onto and off of the truck, there are movers who will handle the driving and will charge you considerably less than a full-service mover who will handle all the aspects of you move from packing and loading to driving and unloading.
Cash Back Bonuses: Credit cards or bank accounts with cash back bonuses can help save you money on your move.
Moving Supplies: You can reduce the cost of your move by saving on moving supplies. Here are some suggestions:
· Get affordable packing supplies by ordering them online.
· Ask a friend who has recently moved to give or sell you their boxes.
· Borrow a tape dispenser instead of buying one.
· Try using crumpled newspaper as an alternative to bubble wrap to pad breakables.
· Shop around for the cheapest deal on packing tape and other supplies.
· Instead of renting padded blankets from the truck rental company, use your own blankets, linens and area rugs for padding. However, most moving companies offer free blanket wrapping of the furniture. Make sure to check it with the company representative.
Own Packing: You can reduce the cost of your move by doing your own packing. Consider a "you pack, we drive" arrangement, in which you pack boxes, and the moving company loads, moves, and unloads your belongings. Make sure you study the Packing Tips section of the moving guide.
Flexibility: You can save on your move if you don’t mind to wait for your belongings for a while. Moving companies sometimes give significant cost reductions if they can short-term-store and consolidate your moving items with other customers' belongings.
Get Rid of Things: Save on your move by eliminating as much as possible. Walk through your home carefully in advance with an eye toward finding things you really don’t need or want. Your house probably contains a lot of things that you no longer use, and have probably even forgotten about. Whether the cost of your move is going to be based on weight or time, it will cost you to move things you can really do without.
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Getting the right estimate
The charges on local moves are usually based on labor time while long distance moves are charged based on weight and distance. In addition to those charges most moving companies have additional charges for various services. Make sure to check with your mover what additional charges might apply to your move.
Additional Charges: Moving companies might charge additional fees for various services they provide during the move. Those fees might include:
· Packing and/or unpacking
· Fuel surcharge
· Walk-up fee
· Long walk from truck to the house
· Extra heavy items such as piano or safe
· Disassembly or reassembly of furniture or other devices
· Shuttle service
Make sure to check with your mover what additional charges might apply to your move. Always demand a written contract covering all the details of the service. The contract should include:
· all the items to be moved
· all costs and charges
· delivery time
· delivery address
· phone numbers
· insurance coverage
· total cost figure
Make sure you get estimates from several moving companies. It is free, so take advantage of it. Quotes given over the telephone and the Internet are difficult for a mover to guarantee.
Binding and Non-Binding Estimates: There are mainly two types of moving estimates: binding and non-binding. In most cases you would prefer to have a binding estimate for your move. Find out how binding is each estimate you get from movers.
Visual Estimate: To properly estimate your job professional mover needs to see exactly what has to be moved. It might be a good idea to ask for a free on-site estimate before engaging with a moving company. Get several online or phone estimates and 2-3 on-site estimates before you choose a mover.
When getting an estimate, make sure to mention all the items to be moved for an accurate assessment. Make sure that you show the estimator EVERYTHING you plan to take. Don’t forget to look in the basement, closets, garage, attic, garden, etc.
Be certain that the estimator has marked all items that are “going” and “not going” on the survey sheet. Keep in mind that if you decide to take more items than you mentioned during on-site estimate the total cost of your move will probably change, even if the estimate was binding.
The estimator will prepare an estimate that will include transportation charges based on the list of items you mentioned and the charges of additional services that you requested. Inform the moving company of any changes with your shipment. Effective communication is a key factor for a successful move.
Don’t rush to book with the company that gives you the lowest estimate. It'll be easy to discard high estimates but should you receive an estimate that is substantially lower than the others, inquire as to why. Perhaps the move estimator didn't see a piece of heavy machinery such as the washing machine in the basement. If he did and he sticks by his estimate, ask him to make it binding and to put it in writing.
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Tipping the movers
It is a common thing in the end to tip the movers. They worked hard for you. Tips differ depending on the size and difficulty of the move as well as the efforts put forth by the movers. The average tip for local moves is 7-12% of the total bill, for long distance moves is $3-5 per hour each based on the labor.
When tipping the movers, it is best that you compensate each one separately to acknowledge the hard work by everyone involved in the relocation.
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Deducting moving expenses from your taxes
Some of your moving expenses may qualify for deduction as an adjustment to income.
It can be done in case you move coincides closely with the start of a new job or a job transfer.
Generally, deductible expenses are:
· Required lodging (but not meals) on a way to your new home.
· Cost of moving household goods and personal belongings.
· Storage of your household goods (up to 30 days).
Of course, not all moves are deductible. In order to deduct your moving expenses, you have to meet two tests:
· Time test:
You must begin working as a full-time employee within 13 weeks of your move, and you must work at least 39 weeks during the 12 months after your move. And it doesn’t matter whether you were transferred by your employer or you took a brand new job. Your move doesn’t even have to be “work-related,” as long as you have a full-time job in the new location.
· Distance:
To meet this test, your new job has to be at least 50 miles further from your old home than your old job was. If you didn’t have a job before the move, your new job has to be at least 50 miles from your old home.
Other important criteria that must be met are:
· Your move has to make your commute shorter than it was prior to your move. In other words, the IRS won’t allow you to deduct your move if you move further away.
· Your move must be closely related to the start of your new job. Generally, this means you have to incur and pay your moving expenses within a year of starting the job, unless circumstances prevented you from moving earlier.
· For most taxpayers, expenses are deductible in the year they were paid, regardless of when they were incurred.
· You cannot deduct a reimbursed expense, unless the reimbursement has been counted in your wages.
· If you are self-employed in the new location, you must work at least 78 weeks during the first 24 months.
· If you are married and are filing a joint return, only one spouse must meet the time test. You cannot, however, add the weeks your spouse worked to those you worked to satisfy the test. In general, you do not have to meet the time test if:
· You are in the armed forces on active duty and your move was due to a permanent change of station, or
· Your job at the new location ends because of death, disability, a transfer for your employer's benefit, or a layoff other than for willful misconduct; or
· You moved from outside of the United States to the United States because you retired, or you are the surviving spouse or dependent of a person who died while living and working outside the United States, and your move begins within 6 months of that person's death.
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