Most moving costs are not deductible anymore, but a narrow exception exists for military members
The moving expense deduction was eliminated for most taxpayers in 2018. If you moved for a new job, changed houses for personal reasons, or relocated to be closer to family, you cannot deduct those costs on your federal tax return — with one significant exception: active-duty military members and their spouses can still deduct unreimbursed moving expenses.
This change affects millions of people who move every year. Before 2018, employees who relocated for work could deduct moving costs. That is no longer true for civilians. The only way to recover moving costs through taxes now is if your employer reimburses you (which is not taxable income to you) or if you are military.
Key Takeaways
- Civilian employees cannot deduct moving expenses, even if the move was required by an employer, because the deduction was suspended in 2018.
- Active-duty military members can deduct unreimbursed moving costs, including transportation, temporary lodging, and storage, on Form 3903.
- If your employer pays for your move, that reimbursement is not taxable income to you and you do not report it on your return.
- Military spouses can deduct moving costs only if they are also on active duty; a spouse who moves to follow a service member cannot deduct the expense.
- The suspension of the civilian deduction is permanent unless Congress passes new legislation to restore it.
Who qualifies: active-duty military only
Only active-duty service members in the U.S. Armed Forces can deduct moving expenses. This includes members of the Army, Navy, Air Force, Marine Corps, Coast Guard, and Space Force. The move must be ordered or approved by the military, and it must be to a new permanent duty station.
Reserve and National Guard members on active duty orders can also deduct moving costs. However, if you are a reservist or guardsman called up for temporary duty or training, the rules are stricter — the move must be to a new permanent duty station, not a temporary assignment.
Civilian spouses of military members cannot deduct moving costs, even if they move at the same time as the service member. Only the service member whose name appears on the military orders can claim the deduction.
What moving expenses you can deduct as military
If you are active-duty military, you can deduct the actual cost of moving your household goods and personal belongings. This includes the cost of hiring a moving company, packing materials, and transportation. You can also deduct the cost of storing your belongings if the storage is necessary because your new duty station is not ready or you cannot move in when ready.
Temporary lodging is deductible, but only for the period between your old home and your new one — typically a few days to a few weeks. The IRS limits this to 30 days unless you have a written military order extending the period. Meals during temporary lodging are not deductible.
Travel costs to your new duty station are deductible: airfare, gas, tolls, and parking. If you drive your own car, you can deduct the actual mileage or use the standard mileage rate (which changes yearly). You cannot deduct the cost of selling your old home, buying a new one, or improvements to either property.
How to claim the deduction on your tax return
To claim moving expenses as military, you file Form 3903 (Moving Expenses) and attach it to your Form 1040. You do not need to itemize deductions to claim this — it is an above-the-line deduction, meaning you subtract it from your gross income before calculating your standard or itemized deduction.
You will need to gather receipts and documentation: moving company invoices, hotel receipts for temporary lodging, mileage logs if you drove, and a copy of your military orders showing the new duty station. Keep these records for at least three years in case the IRS requests them.
If your military branch or the Department of Defense reimbursed you for any of these costs, you subtract the reimbursement from the total before entering the amount on Form 3903. You only deduct the unreimbursed portion.
When your employer pays for the move
If your civilian employer pays for your moving costs directly — hiring the moving company, paying the hotel, covering travel — that reimbursement is not taxable income to you. You do not report it on your tax return, and you do not deduct anything because there is no out-of-pocket cost.
This is true even though you cannot deduct the costs yourself. The tax law treats employer-paid moving expenses as a non-taxable fringe benefit. The employer may deduct the cost as a business expense, but you do not.
If your employer gives you a lump sum to cover moving costs and you keep any of it unspent, that excess amount is taxable income. For example, if your employer gives you $5,000 and you spend $3,500, the remaining $1,500 is reported as wages on your W-2.
Why the deduction was eliminated
Congress suspended the moving expense deduction as part of the Tax Cuts and Jobs Act of 2017, effective January 1, 2018. The stated reason was to simplify the tax code and raise revenue. The suspension was written to expire after 2025, but as of now, no legislation has restored it.
This means that for eight years, millions of people who relocated for work have had no way to recover those costs through federal taxes. Some states offer their own moving deductions, but most do not. A handful of states — including New York and a few others — still allow a state-level deduction even though the federal deduction is gone.
State tax deductions for moving
A few states have not followed the federal suspension. New York still allows a moving expense deduction for residents who move for work. Connecticut allows it under certain conditions. Massachusetts permits it in limited circumstances. The rules and dollar limits vary by state, and some states have income thresholds that phase out the deduction for higher earners.
If you moved to a state that still allows the deduction, you would claim it on your state tax return using your state's form, not Form 3903. Check your state's tax agency website or speak with a tax professional to learn whether your state permits the deduction and what documentation you need.
Frequently Asked Questions
Can I deduct moving costs if my job required me to relocate?
No, not on your federal return. The deduction was eliminated in 2018 for all civilian employees, regardless of whether the move was required by your employer. Your only option is if your employer reimburses you directly — that reimbursement is not taxable income. Some states still allow the deduction; check with your state tax agency.
What if I moved for a new job but my employer did not pay for it?
You cannot deduct those costs on your federal tax return. You have no federal tax relief for out-of-pocket moving expenses. If you moved to a state that still allows the deduction, you may be able to claim it on your state return, but you would need to verify your state's current rules.
Can military spouses deduct moving costs if they move with the service member?
No. Only the active-duty service member whose name is on the military orders can deduct moving expenses. A spouse who moves to follow the service member cannot claim the deduction, even if they pay for part of the move themselves.
If my employer reimbursed me for moving costs, do I report that on my tax return?
No. Employer reimbursement for moving costs is not taxable income, so you do not report it. You also do not deduct anything because you had no out-of-pocket expense. If your employer gave you a lump sum and you spent less than that amount, the unspent portion is taxable and will appear on your W-2.
Are there any other ways to recover moving costs through taxes?
Not through the federal tax system for civilians. Your only federal option is employer reimbursement. Some employers offer flexible spending accounts or other benefits that could help offset costs, but those are not tax deductions. A tax professional can review your specific situation to see if any state deductions explore.