Most moving expenses are not deductible anymore

For most people, moving expenses stopped being tax-deductible in 2018. The Tax Cuts and Jobs Act removed the deduction for all taxpayers except active-duty military members and their families. If you moved for a job, a career change, or any other reason not related to military service, you cannot deduct those costs on your federal tax return.

The only exception is if you are an active-duty member of the U.S. military or a military spouse or dependent who moved because of a military order. Military-connected moves remain deductible under a permanent exception to the 2018 rule change. If you fall into this category, you can deduct reasonable moving and storage costs, as well as travel expenses to your new location.

Key Takeaways

  • Moving expenses are not deductible for civilian taxpayers, even if you moved for work, starting in 2018 and continuing through the current tax year.
  • Active-duty military members, military spouses, and military dependents can deduct moving expenses when the move is ordered by the military.
  • Deductible military moving costs include transportation, temporary lodging, storage, and the cost of moving household goods.
  • You do not need to itemize deductions to claim military moving expenses — you can take the deduction whether you use the standard deduction or itemize.

What counts as a deductible military move

If you are military and your move qualifies, you can deduct the actual costs of transporting your household goods and personal belongings. This includes hiring a moving company, renting a truck, or paying for shipping. You can also deduct temporary lodging costs if you need a place to stay while your permanent housing is being set up at your new duty station.

Storage fees are deductible if you need to store your belongings temporarily during the move. Travel expenses to get yourself and your family to the new location — such as airfare, gas, or train tickets — also count. Keep receipts and documentation for all of these costs, as the IRS may ask to see proof if your return is reviewed.

How to report military moving expenses

Military moving expenses go on Form 3903, which is titled "Moving Expenses." You will file this form along with your regular tax return. The form asks you to list the date of your move, your old address, your new address, and the reason for the move (in your case, military orders).

Unlike most deductions, you do not have to itemize to claim military moving expenses. You can take the standard deduction and still report your moving costs on Form 3903. This makes the deduction more valuable for many military families, since you get both the standard deduction and the moving expense deduction.

What you cannot deduct

Even for military moves, certain costs do not may have access to. You cannot deduct the cost of buying a new home, property taxes, or mortgage interest related to your new location. You also cannot deduct meals during travel, even if you are driving to your new duty station. Costs for house-hunting trips before the move are not deductible, nor are costs to sell your old home or buy your new one.

If your employer reimburses you for moving expenses, you generally cannot deduct those same costs. However, if your employer provides a non-taxable military moving allowance (such as a dislocation allowance), you may still be able to deduct your actual expenses if they exceed the allowance. Check with your military finance office about what counts as taxable versus non-taxable reimbursement.

Keeping records for the IRS

The IRS does not require you to attach receipts to your tax return, but you must keep them in case your return is audited. Save all invoices from your moving company, receipts for temporary lodging, gas receipts if you drove, and airline tickets. Also keep a copy of your military orders showing the date and reason for the move, as this proves the move was military-related.

Organize these documents by category — transportation, lodging, storage, and household goods — so you can quickly add them up and reference them if needed. A straightforward spreadsheet or folder with dated receipts works well. Keep these records for at least three years after you file your return.

State taxes and moving expenses

Some states allow moving expense deductions even though the federal government does not. A few states, including New York and Massachusetts, have their own rules about deducting moving costs. If you moved to or within a state that allows the deduction, you may be able to claim it on your state return even if you cannot claim it federally.

Check your state's tax department website or speak with a tax preparer who knows your state's rules. State rules change, and some states only allow the deduction under certain circumstances, such as moves for work or military service. Filing your state return correctly requires knowing your specific state's policy.

Frequently Asked Questions

Can I deduct moving expenses if my employer paid for the move?

If your employer paid the moving company directly or reimbursed you, you generally cannot deduct those expenses. However, if you received a non-taxable military allowance and your actual costs were higher, you may deduct the difference. Ask your employer or military finance office whether your reimbursement counts as taxable income.

What if I moved for a new job but I am not military?

You cannot deduct moving expenses on your federal return. The deduction ended in 2018 for all non-military taxpayers, regardless of the reason for the move. Check your state's tax rules, as a few states still allow the deduction for job-related moves.

Do I need to file Form 3903 if I did not move?

No. Form 3903 is only filed when you have deductible moving expenses to report. If you did not move or your move does not may have access to, you do not file this form.

Can I deduct moving expenses for a move within the same city?

For military members, yes — if the move was ordered by the military, distance does not matter. For civilians, moving expenses are not deductible regardless of distance. Some states may have different rules, so check your state's tax guidance.

What happens if I cannot find all my receipts?

Keep whatever documentation you have. If you are audited, the IRS will ask for proof of your expenses. Reconstructed records, such as a detailed list with dates and amounts, are better than nothing, but original receipts are stronger evidence. Going forward, save all receipts for three years after filing.