Considering a DITY move (Do-It-Yourself), also known as a Personally Procured Move (PPM)?
Whether you’re in the military or relocating for personal reasons, a DITY move offers flexibility and the potential to earn money by handling the moving process yourself. In this guide, we’ll explore the ins and outs of DITY moves, from potential earnings to tax implications.
What is the Difference Between a Full DITY and a Partial DITY?
In a full DITY move, you handle all aspects of the move yourself. In a partial DITY move, some components are managed by a government-approved contractor, and you handle the rest. Partial DITY moves are less burdensome but offer less potential profit compared to full DITY moves.
Benefits of Do-it-Yourself Military Move
A DITY (Do-It-Yourself) move, also known as a Personally Procured Move (PPM) in the military, offers several benefits for service members and their families. Here are some key advantages:
Reimbursement for Moving Expenses: With a DITY move, service members can be reimbursed by the government for up to 100% of what their moving job would have cost the government. This reimbursement can cover expenses such as the rental of a moving truck, packing supplies, and more By doing some of the work themselves, service members have the potential to save money on moving costs
Greater Control: One of the main advantages of a DITY move is the level of control over the moving process. Service members can choose their own moving company or rent their own truck, allowing them to tailor the move to their specific needs. This control can be particularly beneficial for families who appreciate having control over their belongings during the move.
Flexibility and Convenience: A DITY move allows service members to move on their own timetable, without having to wait for movers to be available to pack and transport their belongings. This flexibility can be especially useful for those who have specific time constraints or preferences for their move.
Potential for Profit: While it’s important to note that not everyone will make a significant profit, it is possible to make money off a DITY move, especially if costs are kept down. By being intentional about what is packed and avoiding unnecessary items, service members can avoid going over their weight limit and potentially increase their profit.
Familiarity with Belongings: Another benefit of a DITY move is that service members know exactly what they have and how they want to pack it. This can help avoid moving unnecessary items that may end up getting stored at the next location and never used. It’s important to note that the financial benefits of a DITY move can vary depending on factors such as location, distance, and the individual’s ability to keep costs down.
Additionally, recent regulations have decreased the payment per pound and imposed limits on trailer size, which may impact the potential profit.
Is a Full DITY Move Worth It?
A full DITY move can be very beneficial if you’re organized and willing to put in the work. You handle all aspects of the moving process, from packing to transportation. The key advantage is the potential to make money if you spend less than the government’s reimbursement rate. However, consider the effort and time required to manage a move successfully.
As a data point, we just moved from VA to OK, maxed out my allowance at 14.5K and incentive payment was $29k. $3600 for uhaul, $1000 for movers labor, so we came out with a nice profit on this move...
How Much Do You Make on a DITY Move?
The amount you can earn from a DITY move depends on the weight of your belongings and the distance of your move. The government reimburses you based on these factors, so if you spend less than the allowance provided, you keep the difference.
The reimbursement rate is calculated per pound, so accurate weight tickets are crucial.
While stories have shown the average PCS costs a military family approximately $5,000. There are service members who swear that you can make money from your PCS move… if you know how to use DITY moves to your advantage.
How Does a DITY Move Work?
In a DITY move, you are responsible for arranging all details of the move. This includes hiring moving services or renting trucks, packing, loading, driving, unloading, and unpacking. After the move, you submit your expense receipts and weight tickets to the appropriate office for reimbursement.
Get the most out of your DITY move
Know Your Move Requirements.
The monetary rewards for a DITY move are no joke, but only if you’re able to keep track of all the details. Is the size of your move manageable enough? How much of it do you want to handle yourself? Do you have friends/family who can help out? Can you make the necessary arrangements for your family and pets?
Do the Numbers.
The government pays you an allowance equalling 95% of what it would have cost to move you, meaning if you DITY and it’s pricier than that number, you’re paying that out-of-pocket. And remember that any extra money you keep from the allowance is taxable income, so you need to get a W-2 form for when you do your tax returns.
Know the Rules.
Talk to your Public Transportation Office counselor when you apply for the move. Learn what qualifies as an authorized shipment and what exactly you’re responsible for. And ask about any extra benefits or travel allowances you can get because you may qualify for a lot more than you expected.
Take Your Time.
The big advantage of a DITY move, aside from knowing where your stuff is at all times, is that you don’t have to depend on a moving company that needs to cram the whole process into one day. Think about getting a U-Haul for a couple days so you can space out the packing process. Get all the heavy stuff done on one day, then move the rest on another day. Recruit any friends and family that may be available to help you out. I find that beer and pizza are excellent incentives.
Ask About Military Discounts.
Most moving companies and moving-related services don’t advertise military discounts, so be sure to ask when you call them. And don’t be afraid to call multiple companies and pit their prices against each other. They want your business and will most likely lower their number to book you.
Common questions about DITY moves
Typically, it takes about 30 days from the submission of your claim with all the necessary paperwork to receive payment. Ensure all documentation is complete and accurate to avoid delays.
Reimbursements for DITY moves are considered taxable income. You will receive a W-2 form reflecting this income, which you must report during tax season. It’s wise to set aside a portion of the reimbursement for tax obligations.
If your shipment exceeds the weight limit authorized in your moving orders, you may be responsible for the additional costs. It’s vital to estimate your shipment’s weight accurately to avoid penalties.
A PPM (Personally Procured Move) covers expenses related to moving services, truck rental, packing materials, fuel, and tolls. Keep detailed records and receipts of all expenses to claim the maximum allowable reimbursement.
