Who Qualifies for the Moving for a Job Tax Deduction?

The Tax Cuts and Jobs Act of 2017 (TCJA) suspended the federal tax deduction for moving costs for most taxpayers for tax years 2018 through 2025. Consequently, civilians and non-military individuals cannot claim this deduction on their federal tax returns during this period. Any reimbursements for moving expenses that civilian employees receive from their employers must be included in their taxable wages.

A specific exception to this suspension exists for active-duty members of the Armed Forces, who can continue to deduct qualifying moving expenses.

Current Eligibility Requirements

The definition of “Armed Forces” for this purpose includes the Army, Navy, Air Force, Marine Corps, Coast Guard, and Space Force. It also extends to the commissioned corps of the Public Health Service and the National Oceanic and Atmospheric Administration. An individual must be a member of one of these branches to meet the initial qualification.

A “permanent change of station” (PCS) is a specific term that includes several types of moves. It covers a move from one permanent post of duty to another. It also applies to a move from a service member’s home to their first post of active duty. Finally, it includes the move from a service member’s last post of duty back to their home or to a closer location within the United States. The move must generally occur within one year of ending active duty to qualify.

Qualifying Moving Expenses

The IRS allows for the deduction of the reasonable costs of moving household goods and personal effects from a former home to a new one. This includes the expense of hiring a moving company or renting a truck. It also covers the costs of packing, crating, and transporting these items.

In-transit expenses for storing and insuring household goods and personal effects are also deductible. There is a time limit on these specific costs; they are generally deductible for any period of 30 consecutive days after the day the items are moved from the former home and before they are delivered to the new home. The cost of connecting or disconnecting utilities at either the old or new residence can be included in the calculation as well.

Travel costs for the taxpayer and members of their household during the move are partially deductible. This includes the cost of lodging while traveling from the old home to the new one. When it comes to vehicle expenses, taxpayers have two options for calculation. They can deduct the actual costs of gas and oil for the trip or use the standard mileage rate for moving. For 2025, the rate for moving is 21 cents per mile.

Certain expenses are explicitly non-deductible and cannot be claimed. These include:

• The cost of any meals consumed during the move.
• Expenses for pre-move house-hunting trips.
• Temporary living expenses upon arrival at the new location.
• Costs associated with buying or selling a home, including closing costs, mortgage fees, and real estate commissions.

How to Claim the Deduction

To claim the moving expense deduction, eligible service members must track and document their expenditures. This preparation involves gathering all relevant receipts for costs such as lodging, packing supplies, moving company fees, and storage. For those who drive their own vehicle, maintaining a detailed mileage log that records the starting and ending locations and total miles driven is necessary for calculating the vehicle expense portion of the deduction.

The next step is to complete Form 3903, Moving Expenses. This IRS form is used to calculate the total amount of the deduction. Taxpayers will transfer their compiled totals for transportation of goods, storage, and travel onto the designated lines of the form.

The result from Form 3903 is entered as an “above-the-line” deduction on Schedule 1 of Form 1040, titled “Additional Income and Adjustments to Income.” This placement allows the deduction to reduce the taxpayer’s adjusted gross income, which can lower their overall tax liability for the year.

State-Level Moving Expense Deductions

While the federal deduction is suspended for civilians, state-level rules can be different. Some states have not aligned their tax laws with the TCJA, which means a taxpayer ineligible for the federal deduction might still be able to deduct moving expenses on their state income tax return.

Because state tax codes are independent of federal law in this area, eligibility depends entirely on the laws of the new state of residence. Individuals must consult the official website of their state’s Department of Revenue or tax agency to confirm the specific rules and requirements.