Moving for a new job is a significant and stressful life event. There are many factors to consider when determining if the perks of moving outweigh the emotional and financial hardships that come with relocating. Review the following points to help determine whether moving for work is the best choice for you.
Steps of Consideration
Employment Situation:
When evaluating whether or not to move for a new job, start with your current situation. Weigh how much you enjoy working for your current employer, the salary and benefits, as well as how your job helps grow your professional skills. Relocating for a new job may be vital to your career growth if your current location may not have the same opportunities. However, if the new job doesn’t offer a significant financial upgrade over your current job, then moving may not be a worthwhile trade-off.
New Location:
In addition to your current career, evaluate your living situation. Your current standard of living may be drastically different when relocating. The potential pay raise you get may not adequately cover the inflated standard of living. Additionally, if selling your current home and buying a new one will result in a significant loss of money, then relocating may not be a sound financial decision. Additionally, make sure that the new residence is a good fit for how your family lives. Research potential neighborhoods to make sure a new location is able to meet any of your potential needs.
Impact on Significant Other:
Making your partner move for work will impact them as much as it will affect you. Your relocation will most likely result in your partner needing to find new work. If your partner has a career that is lucrative or has few openings, moving may hurt their professional future and cost your family more income than a new job would provide.
Impact on Your Children:
Relocating will have a big impact on your children as well. Changing schools, leaving their friends and moving to a new city will be an extremely disruptive change for them. Ensure that your new neighborhood has a quality school system. A good school can both ease the difficulty of change as well as provide new learning opportunities.
Envision Your Future:
Make sure you have stability and a long-term plan with the company for which you are relocating. If you don’t have a set path for your career, you may end up going through the relocation process again in a few years.
Emotional Ties:
You and your significant other may have deep personal relationships in your current city. Leaving your home, job, family and friends will make a move incredibly difficult. Make sure that you and your family are prepared for the emotional toll.
Paying for Relocation
Company Assistance:
Oftentimes, your new employer will help you with moving expenses in order to encourage you to join their company. However, this may not always be the case. Before you make the decision to move and are stuck paying out of pocket, ask your new employer if it intends to offer you financial assistance.
Paying Out of Pocket for Relocation:
If you are personally paying for relocation, you may be able to deduct the expenses from your taxes. However, there are requirements that must be met in order to qualify for this:
1.Distance Requirements:
Must be at least 50 miles farther than your previous employer was from your initial home. For example, if you worked 10 miles from your job, your new home must be at least 60 miles away.
2.Time Requirements:
Must work full time for at least 39 of the 52 weeks following the day you move. “Full time” is decided by your industry’s requirements for full time and there is no universal number that must be met.
3.Moving Expenses:
“Reasonable expenses” that come as a result of needing to move will most likely be deductible. This includes a storage locker for up to 30 days if there is a transition period when you are unable to complete the move (such as a move-in date that comes a few days after moving out). Otherwise, “reasonable expenses” include gas for personal vehicle, parking costs, toll costs, and moving vehicles. Also, if you are moving a long distance, you can deduct airplane and train ticket costs. Unlike most deductible expenses, you are permitted to claim the deduction before you know if you’ll fully qualify for it. This is because the “12 month full time” stipulation might change your qualification. Deciding to relocate for your career may be difficult, as the move will impact many aspects of your life. But if you carefully consider how the decision will affect you and your family, it may ease the stress.
