What Kind of Moving Expenses Are Tax Deductible?
Understand the narrow IRS rules for tax-deductible moving expenses. Learn who qualifies and what costs you can claim.
The ability to deduct moving expenses on a federal income tax return has significantly changed for most taxpayers in recent years. The Tax Cuts and Jobs Act (TCJA) of 2017 largely suspended this deduction for tax years 2018 through 2025. This legislative change means that, for the majority of individuals, costs associated with relocating for a new job or residence are no longer deductible. However, a specific exception remains for a limited group of taxpayers under very particular circumstances.
Current Eligibility for Moving Expense Deductions
Only active-duty members of the U.S. Armed Forces are eligible to deduct unreimbursed moving expenses. This eligibility applies when the move is due to a military order and constitutes a permanent change of station (PCS). A PCS includes moves from a service member’s home to their first post of active duty, transfers from one permanent post of duty to another, and moves from their last post of duty to their home or a nearer point in the United States, provided it occurs within one year of ending active service.
For military members, the traditional “distance test” and “time test” requirements are waived. These tests do not apply to active-duty military personnel moving under a PCS order, simplifying their eligibility criteria.
This deduction is not available for individuals who are not active-duty military members, regardless of their reason for moving. This means those moving for a new job in the private sector, self-employed individuals relocating their business, or retirees moving to a new residence cannot claim this deduction. The exception is specifically carved out for military service.
Qualifying Moving Expenses for Eligible Taxpayers
Active-duty military members can deduct certain expenses incurred during a permanent change of station. These expenses generally fall into categories related to the transportation of household goods and personal effects, as well as travel to the new home. The costs must be reasonable for the circumstances of the move.
Deductible expenses include the costs associated with packing, crating, shipping, and insuring household goods and personal effects. This also covers the cost of storing and insuring these items for any period of 30 consecutive days after they are moved from the former home and before they are delivered to the new residence. Expenses for hauling a trailer are also included.
Travel expenses for the taxpayer and household members from the old home to the new home are also deductible. This includes the cost of lodging incurred during the travel. For vehicle expenses, taxpayers can deduct either the actual costs, such as gas and oil, or use a standard mileage rate, which for 2025 is 21 cents per mile.
Certain expenses are not deductible. These include costs for pre-move house-hunting trips, meals consumed during the move, or temporary living expenses once at the new location. Expenses related to the purchase or sale of a home, such as real estate commissions or title fees, are not deductible moving expenses.
Claiming the Moving Expense Deduction
Active-duty military members claim their moving expense deduction using Form 3903, “Moving Expenses.” The deduction is then reported on Schedule 1 (Form 1040), specifically on Line 14, as an adjustment to income. This means it reduces a taxpayer’s adjusted gross income (AGI) directly, providing a tax benefit whether or not they itemize deductions.
Maintaining records is important when claiming moving expenses. Taxpayers should keep all receipts, invoices, and any mileage logs to substantiate the costs incurred. The Internal Revenue Service (IRS) may request this documentation to verify the claimed deductions.
Only unreimbursed moving expenses are deductible. If the military reimburses a service member for moving expenses, those reimbursements are generally not considered taxable income and therefore cannot be deducted again. However, any qualified expenses paid out-of-pocket and not reimbursed can be included in the deduction calculation.
When completing Form 3903, taxpayers will transfer the qualifying expenses, such as the costs of moving household goods and travel, to the appropriate lines. If multiple moves occur within a tax year, a separate Form 3903 should be used for each move.