Are Moving Expenses Tax Deductible?

Who can deduct moving expenses?

In 2017, President Donald Trump signed the Tax Cuts and Jobs Act (TCJA) into law, which made moving expense claims on federal taxes a thing of the past for most Americans. It was set to expire in 2025, but a new law in July made the suspension permanent for most taxpayers. A handful of states still offer moving deductions to the general public, but federally, only a few special cases warrant moving expense claims.

A move is considered tax deductible if you’re either an active-duty member of the U.S. armed forces and have moved permanently due to military orders or if you’ve recently retired from active duty and moved away from your last post within one year of retirement.

“Starting in 2018, the Tax Cuts and Jobs Act eliminated moving expenses as a tax deduction unless you are an active-duty member of the armed forces,” said Krystal Pino, a certified public accountant and founder of Nomad Tax, a tax consultancy for digital nomads.

If you’re an active-duty or recently retired member of the U.S. armed forces and qualify to deduct your moving expenses, you can do so on IRS Form 3903 as an attachment to your Form 1040. If you qualify, moving expenses for your spouse and dependents can be deducted as well. A spouse or dependent of a U.S. armed forces member who died, was imprisoned or deserted may also qualify.

If you’re still uncertain whether or not you qualify for a moving expenses tax break, the IRS provides a tool to help you determine which moves qualify. Once you’re confident that you meet the requirements, the next step is calculating the total of your qualified moving expenses.

Which moving expenses are tax deductible?

Only “reasonable” moving expenses are deemed deductible. Expenses such as rental trucks, gas, short-term storage, packing materials and insurance can usually be deducted. Travel expenses like oil, parking fees and tolls are fair game too. Stopovers to sightsee or make side trips are not considered deductible expenses, however.

If you choose to deduct moving expenses based on mileage instead of adding up the receipts of moving-related expenses, be aware that the moving expenses mileage rate is much lower than the business expenses mileage rate. The 2025 IRS mileage rates for business travel were 70 cents and 62.5 cents per mile. The rate for moving, however, was only 21 cents per mile.

» LEARN: Tax deductions for homeowners

How to complete IRS Form 3903

Form 3903 is requisite for those who plan to deduct moving expenses. Applicable expenses for the form include shipping fees, hotel stays and travel costs (like gas). Also note that if you’ve moved more than once, you’ll need to fill out two sheets. To complete the form, we recommend having your W-2 handy.

1. On line 1 of the form, include shipping and storage costs for packing and moving your household belongings.
2. On line 2, write in any travel, lodging and gas fees you incurred.
3. On line 4, add reimbursements you received from the government if applicable. This amount should appear in box 12, code P on your W-2.
4. Check to see if your reimbursements are greater than your expenses. If so, the difference will become taxable income. If not, you can deduct the difference.
5. Attach your Form 3903 to your Form 1040 and send it to the IRS. Don’t forget to keep a copy for your records.

Tax forms can be tricky, and errors are common. Here are a few nondeductible items people often make the mistake of including:

• Expenses already reimbursed by the government
• Cost of meals while moving
• Extravagant lodging that incurred unnecessary expenses
• Mortgage fees, security deposits or home improvement expenses
• Storage costs outside the permitted 30-day period following your move-out date

According to the IRS, other common errors people make when filing their taxes include filing too early, misspelling names and neglecting to sign forms. Make sure to slow down and double-check your forms. A tax professional can help.

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