Are you packing your bags and moving to a new city for your dream job? Your employer is moving you to a new location? If you are moving for professional reasons, you can claim certain moving expenses. Here we explain what these are and how you can enter them in the Taxfix app. In the video below, we show you the process step-by-step.

Content:

• When is a move work-related?
• Moving for private reasons or for your studies
• Work-related move from abroad to Germany or from Germany to abroad
• Which costs can I deduct when moving for a job?
• Moving costs lump sum - Umzugskostenpauschale
• Which costs cannot be claimed for tax purposes?
• How do I enter work-related moving costs in the Taxfix app? (Video)

When is a move work-related?

You can claim costs for a job-related move as income-related expenses.

A move is considered work-related if one of the following conditions is met:

• You can reduce your daily travel time by at least one hour (outward and return journey) by moving to a new home
• You are starting your very first job
• You are moving due to a transfer or relocation of the place of work by your employer
• Your move is related to a double household for work reasons
• You are moving into or out of a company flat as a result of your work

In order to prove to the tax office that it is a work-related move, the new employment contract or a certificate from the company, for example, is suitable.

Be aware that if your employer pays the moving costs, you cannot deduct them from your taxes. If your employer pays part of the costs, you must reduce your costs accordingly in your tax return. You can only deduct what you have paid yourself.

Moving for private reasons or for your studies

If the above-mentioned criteria don't apply, your move is not job-related. However, you can also deduct certain costs if you move for private reasons. You can find more information on this here.

If you change your place of residence for your studies, your moving costs might be considered as special expenses or even income-related expenses based on the type of education and degree pursued. We explain the details here.

Work-related move from abroad to Germany or from Germany to abroad

If you move to Germany from abroad for a new job or leave Germany for professional reasons, you can also claim your moving expenses. 

If you move from abroad to Germany for a new job, the same rules apply as to a move within Germany for work-related reasons. You can use the information in this article as a guide for the deductible costs, and you can enter your expenses in the Taxfix app as explained here.

However, if you moved from Germany to another country for a new job, you can only claim your moving expenses in connection with your foreign, non-German salary. We explain here exactly how this works and what you have to pay attention to.

Which costs can I deduct when moving for a job?

A distinction is made between general and other moving costs. In the case of a job-related move, you can claim both for tax purposes.

General costs include, among other things:

• Necessary travel expenses to prepare for the move
• The move itself (packing and transport)
• Double rent payments for up to six months
• Estate agent and viewing costs (e.g. travel to view flats)
• Repairs for transport damage
• Tutoring costs for your children, e.g. if you move to another federal state and therefore need tutoring

General expenses are fully deductible, but you will need all receipts and vouchers.

Other moving costs include expenses for:

• Advertisements to find accommodation
• Re-registration fees
• Catering for your removal helpers
• Renovation / cosmetic repairs in the old flat
• Fitting lamps
• Installation of kitchen and other appliances

You can deduct these other costs either in their actual amount or as a lump sum for moving costs (Umzugskostenpauschale). If you decide to deduct the actual costs, you will need receipts and vouchers.

Moving costs lump sum - Umzugskostenpauschale

With the moving costs lump sum, itemised receipts are not necessary. The amount of the lump sum depends on the date of your move and the number of people in the household:

For moves in June 2020 or later, the following applies:

The moving costs lump sum increases by 50% if you move a second time within 5 years for work-related reasons and you had your own household before and after the moves (i.e. not when you move out of your parents' house).

Taxfix makes it easy for you: In our app, you can specify whether you want to use the lump sum. The lump sum that applies to you is then automatically determined by the app. In the video below, we explain how to claim the lump sum step-by-step.

Which costs cannot be claimed for tax purposes?

The following expenses are not deductible:

• Purchase of new furniture
• Furniture storage costs
• Renovation costs for the new flat
• Costs related to home ownership: e.g. losses and brokerage costs resulting from the sale of a home
• The same applies to estate agent costs resulting from the purchase of a flat or house

How do I enter work-related moving costs in the Taxfix app?

You can enter work-related moving expenses in our app in the "Home" category. Our app lists all relevant expenses here. You will also be asked separately whether you would like to claim the lump sum for other moving costs. Based on the information you provide, the corresponding amount of the lump sum will be determined and automatically taken into account in the app.