Relocation Costs

If the company offers you relocation assistance it may be a in the form of a lump sum payment or a selective reimbursement. There are tax differences for the two approaches; you (probably) won’t be taxed on reimbursed moving expenses, but a lump-sum relocation payment will most likely be taxable, though many moving expenses can be deducted from your taxes. But keep in mind, INATA (I’m Not A Tax Attorney).

If you have to sell your house the company may also offer to pay for closing costs, or in a poor market they may even buy your house outright. This is a significant benefit that may be worth tens of thousands of dollars in many cases. However, this type of benefit is more the exception than the norm unless you are an executive level candidate.

You should be aware that the costs for transporting household items can be outrageous, especially for heavy items like furniture. It can easily cost thousands of $ to move a few rooms of furniture across the country. Hence unless you have high quality furniture it may be better to sell it before you move and buy new furniture at your destination.

Finally, keep in mind there are many other costs involved in moving that might not be obvious at first. You should account for these things when considering relocation.

• House / apartment hunting trips
• Temporary housing while you find a new home
• Security deposit and first & last month’s rent at new apartment
• New furnishings at new home
• Lost / broken items during the move
• Lost income while your spouse finds a new job