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:
| Expense | Deductible? |
|---|---|
| Moving truck or pod rental | Yes |
| Professional movers | Yes |
| Packing supplies | Yes |
| Storage fees — in-transit | Yes |
| Lodging during the move | Yes |
| Gas and mileage | Yes |
| Meals during the move | No |
| House-hunting costs | No |
| Pre-move trips | No |
| Temporary housing at new location | No |
| Real estate fees | No |
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:
- Collect all the receipts and documentation from your move
- Complete Form 3903
- Report the deduction Schedule 1, Line 13
- Attach both forms to your Form 1040
- Keep all receipts for at least three years
- 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.
| State | Who Qualifies | Key Requirements |
|---|---|---|
| California | Most taxpayers | Distance and time tests |
| Massachusetts | Most taxpayers | Similar to old federal rules |
| New York | Most taxpayers | Distance and time tests |
| Pennsylvania | Most taxpayers | Follows old federal rules |
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.
FAQ
Here are the answers to some of the most frequently asked questions about moving expenses.- Are moving expenses tax-deductible?
- Moving expenses are only tax-deductible for active duty military members who are moving due to a permanent change of station order.
- Can I deduct moving expenses for a new job?
- No, you probably can’t deduct moving expenses for a new job, unless you’re active duty military with a permanent change of station order.
- What moving expenses qualify for military members?
- The following moving expenses may qualify:
- Moving truck
- Pod rental
- Professional movers
- Packing supplies
- In-transit storage fees
- Lodging during the move
- Gas and mileage
- The following moving expenses may qualify:
- Can I deduct moving expenses if I was reimbursed?
- No, if you were reimbursed, you can’t deduct those moving expenses from your taxes.
- Can I amend a return for past moving expenses?
- Yes, you can amend a return filed in the past three years if you qualify for the moving expenses deduction.
- Which states allow moving expense deductions?
- California, Pennsylvania, New York and Massachusetts have their own moving expense deductions.
Elizabeth Constantineau and Jacob Wade contributed to the reporting for this article.