Are Moving Expenses Tax-Deductible? Rules, Exceptions and What Qualifies

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For most taxpayers, moving expenses are no longer deductible on federal returns. The Tax Cuts and Jobs Act (TCJA) of 2017 suspended the moving expense deduction through 2025 except for active-duty military members making a permanent change of station.

Moving Expense Deduction: At a Glance

• Federal deduction: Suspended for most taxpayers through the TCJA of 2017
• Federal exception: Active-duty military with permanent change of station orders
• State deductions: Some states still allow the deduction, including California and Massachusetts
• Key form: Form 3903
• Watch for: Possible reinstatement after 2025

Why Moving Expenses Aren’t Tax-Deductible for Most People  

The TCJA of 2017, which is effective for tax years 2018 through 2025, suspended the moving expense deduction for most taxpayers. The suspension was part of a broader tax reform that eliminated many itemized deductions in exchange for higher standard deductions. 

Before this change, anyone who moved at least 50 miles for a new job could deduct qualifying expenses. 

Who Can Still Deduct Moving Expenses on Federal Taxes?

Right now, only eligible active-duty military members can deduct moving expenses on their federal taxes. To qualify, you must:

• Be an active-duty member of the Armed Forces
• Are moving due to military orders, and the move must be the result of a permanent change of station
• Not have already been reimbursed for the expenses

This applies to all military branches, but not to veterans or reservists unless on active duty orders.

What Moving Expenses Are Deductible — If You Qualify

For those who qualify, here’s what can and can’t be deducted.  

Deductible Expenses

• Transportation and storage of household goods
• Travel expenses, including lodging from the old home to the new home
• Costs to connect or disconnect utilities
• Shipping your car or pets

Non-Deductible Expenses

• Meals during the move
• House-hunting trips
• Temporary living expenses
• Lease-breaking expenses
• Real estate commissions or closing costs

Deductible vs. Non-Deductible Moving Expenses: At a Glance

Here’s a breakdown of what you could deduct and what doesn’t qualify:

How To Claim Moving Expenses on Your Tax Return

If you’re an active-duty military member claiming eligible moving expenses, here’s what you do:

1. Collect all the receipts and documentation from your move
2. Complete Form 3903
3. Report the deduction Schedule 1, Line 13
4. Attach both forms to your Form 1040
5. Keep all receipts for at least three years
6. Report any reimbursements that exceed actual expenses as income

Can You Deduct Moving Expenses on State Taxes? 

Even though the federal government suspended the deduction, several states still allow it. 

What If You Moved Before 2018?

If you moved in 2017 or earlier for a job, you could have amended your return to claim the moving expenses within three years of the original filing date. Unfortunately, for most 2017 returns, this deadline has now passed. 

What To Expect in the Future

The TCJA is set to expire after Dec. 31, 2025. In theory, this could mean there’s a potential reinstatement of the deduction for the 2026 tax year. However, Congress would either need to allow the suspension to expire or pass new legislation.

As a result, this is worth watching if you’re moving after 2025.

Common Mistakes People Make With Moving Expenses

Even eligible taxpayers can lose the deduction by making avoidable mistakes.

• Assuming moving expenses are still federally deductible for job moves
• Claiming meals during the move as part of your deduction
• Including house-hunting trips or temporary housing at the new location
• Not checking if their state allows the deduction
• Forgetting to reduce the deduction by employer reimbursement fees
• Not using Form 3903 when claiming the deduction

Key Takeaways

• Moving expenses are not federally deductible for civilians from 2018 to 2025.
• Active-duty military members can deduct moving expenses for permanent change of station orders.
• Several states still allow moving expense deductions.
• Only specific expenses like transportation and lodging are deductible. 

Elizabeth Constantineau and Jacob Wade contributed to the reporting for this article.

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