Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.
Moving expenses are no longer tax deductible for many Americans.
Justin Lambert/DigitalVision/Getty
Moving expenses are no longer tax deductible on federal returns for most Americans.
Active members of the US armed forces with expenses related to a permanent change of station can use the deduction.
Some states still allow moving expense deductions on state tax returns.
See Personal Finance Insider’s picks for the best tax software »
Most Americans can no longer deduct moving expenses on their federal tax return.
Before the Tax Cuts and Jobs Act (TCJA), qualified moving expenses were considered an above-the-line deduction to reduce a person’s taxable income, meaning you didn’t have to itemize the deductions on your federal tax return; you could recoup the costs of relocating for work or to look for a new job and still take the standard deduction.
Are moving expenses tax deductible?
No, moving expenses are not tax deductible on your federal income taxes unless you are active duty military, in which case they might be.
Beginning with the 2018 tax year, the moving expense deduction was suspended until the 2025 tax year, unless you’re an active duty military member or their spouse or dependent. However, a handful of states, including California and New York, still allow moving expense deductions on state tax returns.
Also, for nonmilitary taxpayers, moving expenses for which you were reimbursed by your employer are now included in your gross income, unless the reimbursement was provided by the government for a permanent relocation. Reimbursements used to be excluded from gross income prior to the TCJA.
Moving expenses may be tax deductible for active duty military
In order to deduct expenses related to a move of residence on your 2022 tax return, you must meet two requirements:
You are a member of the Armed Forces on active dutyYou relocate due to a permanent change of station
The IRS defines “permanent change of station” as a move from your home to your first post of active duty; a move from one permanent post of duty to another; or a move from the last post of duty to home or a closer location in the US, which typically must occur within one year of ending active duty.
A spouse or dependent of an imprisoned, deceased, or deserted military member may also qualify to deduct moving expenses.
If you’re moving to a location within the US, qualifying expenses include costs of moving household goods and personal property, as well as gas, tolls, and parking if traveling by personal car. The cost of lodging during travel to the new home is also included, but meals and food are not.
You can also deduct the cost of shipping your car, disconnecting utilities, and storing your belongings for up to 30 days before they are delivered to your new home in the US.
For active duty military members who are moving to a permanent station outside the US, all the aforementioned expenses are deductible, plus the cost of storage for household goods and personal property for the entire time you’re at your new location.
To compute a moving expense deduction, use Form 3903 and follow the instructions to record it on your income tax return, Form 1040. If you file your taxes using an online tax provider, you can record your expenses easily.