Are moving expenses tax-deductible?

Moving to a new home can be expensive, with home services website Angi saying that it costs anywhere from $920  – $2,530 for a local move of 100 miles or less and from $2,700 – $10,000 for a longer cross-country move. And in more bad news? Most people can’t deduct these moving expenses on their taxes, even if they are moving for work.

The only way you can deduct moving expenses on your taxes is if you are an active-duty member of the U.S. military moving because of a military order resulting in a permanent change of station.

A brief history on deducting moving expenses

There was a time when you could deduct moving expenses if you were relocating due to starting a new job or your employer transferred you to a new location. To qualify for this deduction, your new job location had to be far enough from your former home. You were also required to begin your new job shortly after you made the move.

This changed when Congress passed the 2017 Tax Cuts and Jobs Act. This act eliminated tax deductions for moving except for moves made by active-duty members of the U.S. military. This includes members of the Army, Marine Corps, Navy, Air Force, Space Force or Coast Guard.

Today, most U.S. residents can't deduct moving expenses on their income taxes. This policy will remain in effect until at least January 1, 2026, when several provisions of the Tax Cuts and Jobs Act are due to expire. It is not certain whether the deductions will be reinstated for taxpayers moving because of a new job or transfer.

What moving expenses are tax deductible? 

If you’re an active-duty member of the U.S. military and you are moving because of a permanent change of station, there are certain moving expenses that qualify for tax deductions. You can claim these deductions for yourself, your spouse and your dependents.

The IRS considers a moving expense almost anything that you'll spend money on during your move.

You can't, though, deduct any of these expenses if the government will reimburse you for them. If you rent a moving truck to take your belongings to your new base and the government reimburses your rental fee, you can't deduct that cost on your income taxes.

Here are some of the most common examples of deductible moving expenses:

• Moving trucks
• Professional movers
• Packing materials, including boxes, tape and bubble wrap
• Travel costs to your new home, whether you are driving or flying
• The cost of storing items that aren’t going to be moved
• Cleaning supplies and services
• Moving insurance
• Hotel rooms that you book during the days on which you’re traveling during your move

What moving expenses are not tax deductible? 

If you’re moving because of military orders, there aren’t many moving expenses that are not tax deductible. The only one that the IRS specifies that’s not deductible is the cost of meals. If you stop at a restaurant while driving to your new station, you can’t deduct the cost of that meal. If you buy groceries for your new home while moving in, you can’t deduct that cost, either.

Requirements for deducting moving expenses

If you moved prior to 2018 but didn't claim a moving expense tax deduction, you might be able to file an amended tax return to deduct these moving expenses.

Remember, though, unless you were a member of the U.S. military moving because of orders, you can't claim any moving deduction prior to 2018 unless you moved because you were starting a new job or you were transferred to a new position in another location. You also can't claim a deduction if your employer reimbursed you for your moving expenses.

To file an amended claim as a non-military member, you must also meet the time and distance tests.

To satisfy the time test, you must have started your new job and worked full time at it for at least 39 weeks within the first 12 months following your move.

To satisfy the distance test, your new workplace must be at least 50 miles farther from your old home than your former office or place of employment.

Say you formerly lived in a home that was 30 miles from your old job. To claim a tax deduction – prior to 2018 – you would have had to have taken a new job that was at least 80 miles from your old home.

If you are a member of the U.S. military, you are not required to meet the time or distance tests to deduct moving expenses.

How to deduct your moving expenses

If you are eligible to deduct moving expenses, you’ll start by filling out IRS Form 3903,which you use to determine how much you can deduct.

Filling out the form is simple. First, list storage and shipping costs on line 1. These costs include what you paid for movers, renting a moving truck, insuring your possessions, packing your items and storing everything.

List any travel, gas and lodging costs you incurred during your move on line 2 of Form 3903. These costs include the dollars you spent on lodging, gas and mileage during the move.

When you file your taxes, attach your completed Form 3903 with your return. Report your moving expense deduction, which you calculated using Form 3903, on IRS Form 1040 on line 14 under Adjustments to Income.

The bottom line

While most people can no longer deduct their moving expenses, that’s no reason to not look for a new home if the time is right for you. If you’re ready to begin your search for a new home, start the mortgage approval process with Rocket Mortgage® today.