Last updated: 2/1/2025
Moving can be incredibly stressful, and there are so many things to keep track of. While most people know that moving takes time and effort, it’s easy to overlook the financial side of things in the midst of the chaos.
Given how expensive a move can be, the idea of saving money afterward is definitely appealing. For some, this comes in the form of tax-deductible moving expenses. But the big question is: are moving expenses tax-deductible? Keep reading to find out if you qualify and to discover which moving expenses you can write off!
Table of Contents
What Are Tax Deductions?
Before we get into how moving expenses affect your taxes, let’s first explain what “tax-deductible” means. Simply put, a tax-deductible expense is any money you spend that can be subtracted from your total income when filing taxes.
When an expense is tax deductible, it lowers your taxable income, which means you’ll pay less in taxes. Some common examples of tax-deductible expenses include student loan interest, donations to charity, and medical costs (under certain conditions). These deductions can help reduce the amount of taxes you owe, making them a great way to save money.
Are My Moving Expenses Tax Deductible?
Many people wonder if they can deduct their moving expenses from their taxes. Due to changes in tax law, most Americans can no longer claim this deduction. Before 2017, anyone could write off moving expenses. However, the Tax Cuts and Jobs Act (TCJA) passed in December 2017 eliminated this for most taxpayers. Currently, only certain military personnel are eligible for deductions related to moving expenses. If you don’t fall into this category, you may be able to file an amended claim to deduct any unclaimed moving expenses prior to 2018.
Qualifying military personnel can still deduct their moving expenses. To do so, they can include a completed Form 3903 and Form 1040 when filing their taxes.
Future Changes to Eligibility
It’s important to note that the TCJA is set to expire on December 31, 2025. This could lead to changes in the current rules. Lawmakers may revise tax policies, potentially affecting the eligibility for tax-deductible relocation expenses. Be sure to check state and federal resources for updates as we approach this deadline.
Moving Qualifications for Military Personel
While many military members qualify for tax deductions after moving, some qualifications must be met:
- You must be a member of the Armed Forces on active duty.
- Your move must result from a permanent change of station. This includes a move from your home to your first place of active duty, a move from one permanent post of duty to another, and a move from your last post of duty to your home or to a nearer point in the United States. The move must occur within 1 year of ending your active duty or within the period allowed under the Joint Travel Regulations.
- You must move 50 miles away from your previous place of work. If your old job was 5 miles from your home, the new job must be at least 50 miles away from the old job’s location, not your old home. So, if the new job is 55 miles away from the old job, you meet the IRS distance requirement.
- You cannot claim any relocation expenses that have already been directly paid for or reimbursed by the military. You can deduct your unreimbursed moving expenses for you, your spouse, and your dependents.
Exceptions
Of course, there are exceptions to these rules. If a service member begins the move before their family relocates, certain expenses related to the service member’s move can still be deducted. However, it is important to note that this specific exception generally applies when the family’s move is delayed for valid reasons. This could include medical or school-related situations, not just the timing of the service member’s start date.
If significant life events delay a family’s relocation, like a medical emergency or the completion of a school year, the military move may still be deductible. Always consult the IRS guidelines or a tax professional for personalized advice about these exceptions.
Tax Deductible Relocation Expenses
There are certain specifications for what qualifies as a deductible moving expense for military personnel. The IRS provides a list of reasonable moving expenses for the circumstances of your move. Here are some examples of costs covered by military tax deduction guidelines:
- Travel by car – The IRS has a standard mileage rate of 21 cents per mile for military tax deductions in 2025. You can use this metric to keep track of your tax-deductible relocation expenses, or your actual expenses. This may include keeping an accurate record of the cost of gas and oil for your car.
- Household Goods and Personal Effects – This includes the cost of packing and moving your items as well as expenses of shipping cars and moving with pets to your new location.
- Members of your household – You can deduct any expenses you pay for yourself or other members of your household. This does not include tenants or employees unless they are your dependents.
- Storage – The cost of insuring and storing your items within a 30-day period after the day your things are moved from your former home.
- Travel – The cost of transportation and lodging for you or members of your household while traveling from your former home to your new home.
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Non-Deductible Relocation Expenses
Although there are many tax-deductible relocation expenses available for military members, there are some things that are not covered. According to IRS guidelines, some of these military tax deductions include:
- Any part of the purchase price of your new home
- Mortgage penalties
- Pre-move househunting expenses
- Real estate taxes
- Expenses of buying or selling a home
- Expenses of entering into or breaking a lease
- Home improvements to help sell your home
Conclusion
The ability to deduct moving expenses has become much more limited since the Tax Cuts and Jobs Act was passed in 2017. For most taxpayers, moving expenses are no longer deductible, except for active-duty military personnel, who can still claim unreimbursed moving costs. If you’re eligible, you can deduct expenses for yourself, your spouse, and dependents, as long as the military hasn’t already reimbursed them.
It’s important to keep in mind that the Tax Cuts and Jobs Act is set to expire on December 31, 2025, which could lead to changes in the rules regarding tax-deductible moving expenses. There’s a possibility that lawmakers may revisit these provisions, and moving expenses could become deductible again for more taxpayers in the future. To stay on top of any changes, make sure to check for updates from both state and federal resources as we approach this deadline.
FAQs
A tax-deductible expense is any money you spend that can be subtracted from your total income when filing taxes. When an expense is tax deductible, it lowers your taxable income, which means you’ll pay less in taxes.
Active-duty military personnel who meet specific conditions can qualify for moving expense deductions. To be eligible, the move must be due to a permanent change of station. The new job location must be at least 50 miles further from your old duty station than your previous work location.
Unfortunately, most taxpayers cannot deduct moving expenses after the TCJA of 2017, unless they are active military personnel. If you moved before 2018 and didn’t claim the deduction, you may be able to amend your tax return to claim those expenses.
For more details, refer to official IRS resources such as Publication 521 or check out the IRS Moving Expense Deduction page. You can also consult a tax professional for specific guidance regarding your situation.
Maura De Cicco attends the University of Iowa as a Journalism and Anthropology student. She plans to pursue a strategic communications track when it comes to writing, and an archaeology track when it comes to Anthropology.
Caroline is an undergraduate at the University of Iowa studying Business Management and English Publishing. When she's not studying, she spends time reading, hanging out with friends, working out, traveling, and calling her family. After college, Caroline will enter the publishing industry, where she will help authors and their stories find their perfect audience.
Skylar Sanders is an Atlanta native and earned her BA in Film and Media Studies from Georgia State University in 2022. She is currently a graduate student at GSU studying Communications with a concentration in Digital Media Strategies. In her free time she enjoys being in nature, volunteering, creating digital art, and catching up on her favorite TV shows.
