Are Moving Expenses Tax Deductible?

kupicoo / Getty Images

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

Moving expenses used to be a common tax write-off — but that’s no longer the case for most people. Since 2018, only active-duty military members can deduct these costs on their federal tax return. However, a few states still offer limited deductions. Here’s what to know about who qualifies, what you can deduct and how to claim moving expenses if you’re eligible.

Are Moving Expenses Tax Deductible?

For most people, moving expenses are no longer tax deductible. The Tax Cuts and Jobs Act, which took effect in 2018, suspended the moving expense deduction for all but one group: active-duty military of the U.S. Armed Forces.

If you’re in the military and meet specific requirements, you may still be able to claim this deduction on your federal return. For everyone else, the deduction is currently off the table until at least 2026 — unless Congress makes changes sooner.

Who Qualifies for the Moving Expense Deduction?

To qualify for the federal deduction, you must meet all of the following:

• Be on active duty in the U.S. Armed Forces.
• Be moving because of a permanent change of station.
• Be relocating to a new duty station, your first post or from your last station after discharge.
• Have moving expenses not covered by the military.

What Moving Expenses Are Deductible?

If you are active-duty military and qualify for the moving expense deduction, there are a number of related expenses eligible for deduction. This may include:

• Rental moving trucks
• Packing supplies like boxes, bubble wrap, tape, etc.
• Cleaning supplies or professional cleaning fees
• Temporary storage
• Cost of professional movers
• Cost of transportation (gas or airline tickets)
• Hotel stays for long-distance moving
• Moving insurance

What Moving Expenses Aren’t Deductible?

There are several moving expenses that you cannot deduct, including:

• Any part of the purchase price of the new home
• Car license tags and fees
• Expenses related to buying or selling of home
• Home improvement costs
• New furniture purchase en route to new home
• Return trips to previous home
• Long-term storage charges (except those incurred in transit and for foreign moves)
• Cost of meals during the move

And since the military may reimburse many of your moving expenses, any expense that is paid for or reimbursed by the government cannot be deducted.

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

To make it easier to understand which expenses qualify for the moving expense deduction and which do not, here’s a quick comparison:

How To Claim Moving Expenses on Your Federal Return

To claim moving expenses on your tax return, you’ll need to fill out IRS Form 3903 and complete it alongside your tax return. Here’s how to fill out form 3903:

• Enter the total cost of transportation and storage of household goods and personal effects.
• Enter the total cost of travel (including lodging) from your old home to your new home. Do not include the cost of meals.
• Subtract the total amount the government paid you for moving expenses. This amount should be shown in box 12 of your Form W-2 with code “P.”
• If your total cost of moving exceeds any government reimbursements for moving, you can deduct the difference.
• If the government reimbursement matches or exceeds your total moving costs, you cannot deduct any moving expenses.

You don’t need to attach any receipts or documentation of your moving expenses to Form 3903, but must keep these receipts for your tax records.

How to Claim Past Moving Deductions

If you qualified for a moving expense deduction in a previous year, you can still claim it by amending your tax return with Form 1040-X. This applies to years before the Tax Cuts and Jobs Act suspended the deduction for most taxpayers.

Include Form 3903 with your amended return to report eligible expenses, and keep records like receipts and mileage logs. You generally have up to three years to file an amendment.

Need help? A tax professional can guide you through the process of claiming moving expenses from previous years.

Are Moving Expenses Deductible on State Taxes?

A few states still allow you to deduct moving expenses on your state tax return — even if you’re not in the military. Rules vary by location:

• California: Your new job must be at least 50 miles farther from your old home, and you must work full time for at least 39 weeks after the move.
• Arkansas: Requirements are similar to California, but you’ll need to file Form AR3903 for the deduction.

Note: Always check with your state’s tax agency for the most up-to-date rules.

Final Take

Here’s what to keep in mind about deducting moving expenses:

• Most people can’t deduct them on federal returns anymore.
• Military members on active duty may still qualify.
• A few states allow deductions — double-check your local tax laws.
• The federal deduction might come back after 2025, but it’s too soon to know for sure.

Elizabeth Constantineau contributed to the reporting for this article.

Share This Article: