Can I Write Off Moving Expenses on My Tax Return?

Moving expenses, once a common federal tax deduction for many individuals relocating for work, have undergone significant changes in recent years. The Tax Cuts and Jobs Act (TCJA) of 2017 substantially altered the landscape for these deductions, effectively suspending them for most taxpayers. For tax years 2018 through 2025, the ability to deduct these costs on a federal return is largely limited to a specific group of individuals. This legislative shift means that only a narrow exception allows for the federal deduction of moving-related costs.

Current Eligibility for Moving Expense Deductions

For federal tax purposes, the ability to deduct moving expenses is highly restricted. The Tax Cuts and Jobs Act of 2017 eliminated this deduction for most taxpayers through tax year 2025. This means general taxpayers cannot claim these expenses on their federal income tax return, regardless of the reason for their move.

The primary exception to this rule applies exclusively to active-duty members of the U.S. Armed Forces. These individuals may still be eligible to deduct unreimbursed moving expenses if their relocation is due to a military order for a permanent change of station. A “permanent change of station” encompasses several scenarios for military personnel. This includes a move from one’s home to their first active-duty post, a move from one permanent duty station to another, or a move from a last duty station to their home or a closer point within the United States. The move from a last duty station must occur within one year of ending active duty or within the period specified by the Joint Travel Regulations.

Eligible military members can deduct reasonable expenses for themselves, their spouses, and their dependents. This deduction does not extend to other taxpayers, even if their move is work-related or meets previous criteria like distance and time tests.

Understanding Qualified Moving Expenses

For active-duty military members who meet the eligibility criteria, certain specific expenses can be considered qualified for the deduction. These expenses must be reasonable under the circumstances of the move. The costs associated with transporting household goods and personal effects are generally deductible. This includes expenses for packing, crating, hauling a trailer, in-transit storage, and insuring these items.

The cost of travel, including lodging but not meals, from the old home to the new home is also a qualified expense. For personal vehicle use, actual costs (oil, gasoline, parking fees, tolls) or a standard mileage rate can be deducted. Storage fees for household goods and personal effects are deductible if incurred within a 30-consecutive-day period after moving from the former home and before delivery to the new one. Expenses not included are costs for buying or selling a home, house-hunting trips, or meals consumed during the move.

How to Claim the Moving Expense Deduction

Eligible active-duty military members must use IRS Form 3903, “Moving Expenses,” to calculate their deductible moving expenses. Form 3903 instructions detail specific expenses, including costs for packing, crating, moving household goods, personal effects, and travel from the old residence to the new one.

After completing Form 3903, the deductible amount is reported on Schedule 1 (Form 1040), “Additional Income and Adjustments to Income.” This “above-the-line” deduction reduces your adjusted gross income (AGI) directly, without requiring itemization. Maintain detailed records, including receipts, as these may be required to substantiate the deduction if requested by the IRS.