The information in this article is up to date for tax year 2025 (returns filed in 2026).
Are moving expenses tax deductible? For most people, the answer is no, due to changes brought by the Tax Cuts and Jobs Act (TCJA) of 2017. However, there are exceptions for active-duty military members who can still benefit from these deductions. In this article, we’ll cover who qualifies for moving expense deductions, what specific expenses are deductible, and how to claim these deductions on your taxes.
Key Takeaways
- Most U.S. residents can’t deduct moving expenses from 2018-2025 due to the TCJA, except active-duty military members.
- Eligible moving expenses for military personnel include packing, travel, and storage costs, while meals are not deductible.
- Keeping detailed receipts and using IRS Form 3903 are essential for claiming any allowable moving expense deductions.
Understanding Moving Expense Deductions
Moving expenses are the costs associated with relocating. This often occurs due to a new job or a job transfer. You might think this sounds like a straightforward expense to deduct from your taxes, but the reality is a bit more complicated. The Tax Cuts and Jobs Act (TCJA) of 2017 significantly changed the landscape by removing the ability to deduct moving expenses for most taxpayers, a provision that remains in effect through 2025.
It’s worth noting that there are exceptions to these rules. Spouses and dependents of active-duty military members may have their moving expenses covered under certain conditions. This guide will delve deeper into who qualifies for these deductions and how you can take advantage of them.
Who Can Deduct Moving Expenses?
Active-duty Armed Forces members who relocate due to military orders and a permanent change of station may deduct unreimbursed moving expenses for themselves, their spouse, and their dependents. Military members can claim these deductions using IRS Form 3903.
A permanent change of station includes:
- Moving from the service member’s home to their first post of active duty.
- Moving from one permanent post of duty to another permanent post.
- Moving from the last post of duty to the service member’s home or to a nearer point in the United States. The move must be within either one year of leaving active duty or the period allowed under the Joint Travel Regulations.
Spouses and dependents of active-duty military members have specific conditions under which they can claim moving expense deductions, especially in difficult circumstances such as desertion, imprisonment, or death of the service member. A permanent change of station includes moves to:
- The service member’s place of enlistment or induction
- You or the members home of record
- A nearer point in the United States
What Moving Expenses Are Tax Deductible?
So, what exactly can you deduct if you qualify? Packing, crating, hauling a trailer, in-transit storage, and insurance are all deductible moving expenses.
This section will break down the specifics into two main categories: travel expenses and storage expenses.
Deductible Travel Expenses
Travel-related expenses can quickly add up when you’re moving. Fortunately, certain costs are deductible. Lodging expenses incurred within one day after you no longer live in your former home are eligible for deduction. This includes the cost of airfare and car expenses, but unfortunately, meal costs are excluded.
If you’re using your car for the move, you can also deduct gas, parking fees and tolls. The IRS has established a standard mileage rate of 21 cents per mile for 2025. To qualify for these deductions, the expenses must be out-of-pocket and not reimbursed by an employer.
Deductible Storage Expenses
Storage expenses can be another significant part of your moving costs. Expenses for storing personal items and household goods and personal effects are deductible if incurred within the specified 30-day period after your move. This means you can deduct the cost of storing and insuring household goods for up to 30 days after the move.
Additionally, transportation and insurance costs related to moving personal items are also included in deductible expenses. So, if you need to keep your belongings in a storage unit for a short period while you get settled, these costs can help reduce your taxable income, as some expenses tax deductible can apply.
Nondeductible Moving Expenses
Understanding what you can’t deduct is just as important as knowing what you can. Here are some common nondeductible moving expenses:
- Meal costs during your move.
- Furniture and other goods purchased on the way to your new home.
- Costs associated with breaking a lease.
- Luxury accommodations deemed excessive.
- Additional side trips unrelated to the move.
If your employer pays for any moving costs, you cannot claim those expenses as deductions, meaning you won’t receive a tax benefit for them.
How to Claim Moving Expense Deductions
Claiming moving expense deductions involves a few critical steps:
- Active-duty military personnel must file IRS Form 3903 to report their moving expenses.
- This form can be downloaded from the IRS website.
- The form is essential for documenting your deductible expenses.
When filing your taxes, these deductions should be reported on IRS Form 1040, line 14 under Adjustments to Income. Only unreimbursed moving expenses can be deducted, and receipts are required to substantiate these costs.
Maintaining detailed records and using the correct IRS forms are vital for eligible taxpayers claiming moving expenses. Retain your receipts for at least three years post-filing to cover potential audits. Clear and legible digital copies are acceptable.
Need help claiming your military moving expense deduction? ezTaxReturn guides you through every step to ensure you get the maximum refund you’re entitled to—fast, easy, and 100% accurate.
Employer Reimbursements and Moving Expenses
Employer reimbursements can affect how your moving expenses are taxed. If the government gives you more money than you actually spent on your move, the extra amount is usually added to your income and shown on your Form W-2.
Even if that extra money isn’t listed on your W-2 (except for certain allowances like dislocation, temporary lodging, or move-in housing), you still have to report it as income on line 1h of Form 1040 or 1040-SR.
Do You Need to Keep Receipts for Moving Expenses?
Absolutely, yes! Maintaining thorough documentation and receipts for all moving costs is essential to support moving expense claims and adhere to IRS regulations. Planning a move? Don’t forget to manage your finances wisely—start with these Smart Money Moves to Make Before You Travel.
Detailed records are crucial for compliance and could save you from potential headaches if you face an audit.
Can Non-Military Taxpayers Deduct Moving Expenses?
Most taxpayers cannot deduct moving expenses due to the TCJA. This provision is in place until 2025, meaning non-military taxpayer are largely out of luck.
However, some states may still allow moving expense deductions on state tax returns, even if federal deductions are not permitted.
Special Considerations for Military Members
Active-duty military members have unique considerations when it comes to moving expenses. They can claim moving expenses if their move is due to a military order and a permanent change of station. This includes costs for:
- Household goods
- Personal effects
- Storage
- Travel expenses, including lodging.
Military members must report these moving costs on Form 3903. Understanding these special considerations can help maximize their tax benefits and ease the financial burden of frequent relocations to a new home, allowing them to pay for necessary expenses under joint travel regulations, which may include paid costs. For a deeper look at military-specific tax advantages, check out our guide on Military Tax Benefits: How Service Members Can Save More.
Summary
While the TCJA has made it challenging for most taxpayers to deduct these moving costs, exceptions exist for active-duty military members. Keeping detailed records and knowing what expenses are deductible can significantly reduce your taxable income.
Remember, the landscape of tax laws can change, and staying informed is your best strategy. Take control of your personal finances and turn that stressful move into a financially savvy decision.
Frequently Asked Questions
Who can deduct moving expenses in 2025?
If you’re active-duty military and your move is due to a military order for a permanent change of station, you can deduct your moving expenses in 2025. That’s the only scenario where this deduction applies!
What moving expenses are tax-deductible?
You can deduct moving expenses like packing, hauling, in-transit storage, and insurance. Don’t forget about travel costs like lodging and airfare, but meals won’t make the cut.
How do I claim moving expense deductions?
To claim moving expense deductions, active-duty military members need to fill out IRS Form 3903 and report it on line 14 of Form 1040. It’s pretty straightforward!
Are moving expenses reimbursed by an employer deductible?
If your employer reimburses your moving expenses, you can’t deduct them on your taxes. So, it’s a one or the other situation!
Do I need to keep receipts for moving expenses?
Absolutely, you should keep all your receipts for moving expenses to support your claims if you’re filing for any deductions. It’s just a smart move to stay organized and compliant!
The articles and content published on this blog are provided for informational purposes only. The information presented is not intended to be, and should not be taken as, legal, financial, or professional advice. Readers are advised to seek appropriate professional guidance and conduct their own due diligence before making any decisions based on the information provided.
