Section 217: Who Can Claim the Moving Expense Deduction?

The moving expense deduction, governed by Section 217 of the Internal Revenue Code, allows certain taxpayers to subtract the costs of a job-related move from their gross income. This tax provision has undergone significant modifications in recent years. A major legislative overhaul has substantially narrowed the group of individuals who can benefit from this deduction.

Determining Your Eligibility

The Tax Cuts and Jobs Act of 2017 (TCJA) suspended the moving expense deduction for most taxpayers for tax years 2018 through 2025. This means that for the majority of individuals, the costs associated with relocating for a new job are no longer deductible on their federal income tax return. The suspension is broad, affecting nearly all civilian taxpayers regardless of the reason for their move. This change marked a significant departure from previous, more permissive regulations.

The primary exception to this suspension applies to a specific group: active-duty members of the U.S. Armed Forces. To qualify, the move must be the result of a military order for a permanent change of station (PCS). The Armed Forces include the Army, Navy, Marine Corps, Air Force, Space Force, and Coast Guard. A service member is considered on active duty if they are serving full-time in the U.S. Armed Forces.

A permanent change of station includes several types of moves. It covers a move from your home to your first post of active duty, a transfer from one permanent duty station to another, and the final move from your last post of duty back to your home or a nearer location in the United States. This final move must generally occur within one year of ending active duty. Some states, however, have not aligned their own tax laws with this federal change, so taxpayers should review their state’s rules to determine if they might still qualify for a deduction at the state level.

Deductible Moving Expenses

For eligible military members, a move must meet certain standards for the associated costs to be deductible. For military personnel, the primary qualifier is the permanent change of station order. The core requirement is that the expenses must be reasonable for the circumstances of the move.

Deductible moving expenses fall into two main categories: the cost of transporting household goods and personal effects, and travel costs for the taxpayer and their household members. This includes the expense of packing, crating, and shipping your belongings from your former home to your new one. You can also deduct the cost of storing and insuring these items while they are in transit.

Travel costs from your old residence to your new one are also deductible. These expenses include lodging for yourself and members of your household while on the way to the new home. If you drive your own vehicle, you can deduct the actual costs of gas and oil or use the standard mileage rate for moving. You can also include parking fees and tolls paid during the trip.

Certain expenses are specifically not deductible. You cannot deduct the cost of meals during the move. Other non-deductible costs include any part of the purchase price of your new home, the costs of selling your old home, or charges for breaking a lease. Pre-move house-hunting trips and temporary living expenses after you arrive at the new location are also not permitted as deductions.

Calculating and Reporting Your Deduction

To claim the moving expense deduction, you must complete and file IRS Form 3903, Moving Expenses. Before you begin, gather all relevant financial records related to your move. You will need specific documentation to accurately complete Form 3903. This includes receipts for hiring movers or renting a truck, packing supplies, and any storage fees. You should also have records of lodging expenses incurred during the travel period between your old and new homes. Keep a log of the number of miles driven for the move if you plan to use the standard mileage rate.

When calculating vehicle expenses, you have two options. You can either deduct your actual out-of-pocket costs for gas and oil or use the standard mileage rate set by the IRS for moving purposes. For 2025, the rate is 21 cents per mile. After calculating your total moving expenses on lines 1 through 3 of Form 3903, you must report any reimbursements received from the government on line 4.

The final calculated deduction from Form 3903 is then reported on Schedule 1 of Form 1040, “Additional Income and Adjustments to Income.” If you had more than one qualifying military move during the tax year, you must complete a separate Form 3903 for each one.