What Moving Expenses Are Tax Deductible?

Moving involves various financial considerations, and many individuals explore potential tax deductions for relocation expenses. While the rules have changed over time, certain provisions still allow for tax benefits under specific circumstances. This article clarifies which moving expenses may be tax deductible, particularly in the current tax landscape.

General Rule for Moving Expenses

For most taxpayers, moving expenses are not tax deductible for tax years 2018 through 2025. This change was implemented as part of the Tax Cuts and Jobs Act (TCJA) of 2017, which suspended the deduction for non-military moves. This means most individuals relocating for work or personal reasons cannot claim these costs on their federal tax returns, regardless of whether the move is for a new job or a job transfer. While prior law allowed deductions based on distance and time tests for new employment, these requirements no longer apply for most non-military individuals. However, a few states may still allow moving expense deductions on state tax returns.

Military Exception for Moving Expenses

A specific exception applies exclusively to active-duty members of the U.S. Armed Forces. If a move is due to a military order and a permanent change of station (PCS), these individuals may be eligible to deduct certain unreimbursed moving expenses. This exception includes moves from a home to a first active duty post, between permanent duty stations, or from a last duty post back to a home or a nearer point in the United States. The move from a last post of duty must occur within one year of ending active duty or within the period allowed under the Joint Travel Regulations.

This deduction is considered an “above-the-line” deduction, meaning it reduces a taxpayer’s adjusted gross income (AGI), which can be beneficial regardless of whether they itemize deductions. Spouses and dependents of active-duty military members may also have eligible expenses under certain conditions, such as a move due to the service member’s death, desertion, or imprisonment. Only unreimbursed expenses are deductible; any costs covered by military allowances or direct payments from the government cannot be claimed.

Specific Deductible Expenses for Qualified Moves

For qualifying active-duty military members, specific types of unreimbursed expenses are deductible. These include costs associated with packing, crating, and transporting household goods and personal effects, as well as expenses for shipping vehicles and transporting household pets. Additionally, costs for connecting or disconnecting utilities at the new residence may be eligible.

The cost of storing and insuring household goods and personal effects is deductible for a period of up to 30 consecutive days after the items are moved from the former home and before they are delivered to the new home. Travel expenses to the new home are also deductible, encompassing transportation and lodging costs for the service member and their household members. This includes expenses for the day of arrival and potentially one night’s lodging at the old location if furniture has been moved. Taxpayers can choose to deduct actual automobile expenses, such as gas and oil, or use a standard mileage rate, which was $0.21 per mile for 2024.

However, the following expenses are not deductible:
Meals
Temporary lodging beyond the first night at the new location
Vehicle registration
House-hunting trips