Are you planning a move? Whether it’s for a new job, a change of residence, or other reasons, moving can be both exciting and stressful. What you might not realize is that most moving expenses are no longer tax-deductible — unless you are an active-duty member of the U.S. Armed Forces moving under official military orders. In this guide, we’ll explore the current rules on tax-deductible moving expenses, helping you understand when you can qualify for these deductions.
Understanding Tax-Deductible Moving Expenses
Before we dive into the specifics, it’s essential to know who qualifies. Due to the Tax Cuts and Jobs Act (TCJA), the ability to deduct moving expenses is suspended for most taxpayers through 2025. The only exception is for active-duty military members. To qualify for a deduction, your move must meet the following criteria:
- You must be an active-duty member of the US Armed Forces.
- Your move must be due to a permanent change of station (PCS) and military orders.
If your move meets these criteria, you might be eligible for tax deductions on your moving expenses. Let’s break down which expenses qualify:
Eligible Moving Expenses (Military Members Only)
Transportation Costs This includes expenses related to transporting your household goods and personal belongings. Costs for packing, crating, and shipping fall under this category.
Travel Expenses You can deduct the costs of lodging during the trip, but not meals. If you drove to your new location, you can also claim a standard mileage rate for medical/moving purposes (e.g., 21 cents per mile in 2024).
Storage Costs If you need to store your belongings before moving them to your new home, those costs can be tax deductible (up to 30 days).
Utility Connection/Disconnection Fees Fees related to connecting or disconnecting utilities like water, gas, or electricity can be included (generally not deductible unless specific to qualified military moves).
Special Needs If you have to move certain items that require special handling, such as a piano or art collection, the additional costs for their transportation could be deductible (generally not deductible unless specific to qualified military moves).
Common Questions
What if my employer reimburses me for my moving expenses? Can I still claim deductions? For most taxpayers, moving expenses are not deductible, and employer reimbursements may be considered taxable income. However, if you’re an active-duty military member moving under orders, reimbursements may be excluded, and deductions may still apply.
Are there any time constraints for claiming these deductions? You typically need to claim your moving expense deductions in the tax year when your move occurred. Keep the records, receipts, and documentation in case the IRS requires verification.
Can self-employed individuals claim moving expense deductions? No. Under current law, self-employed individuals are not eligible to deduct moving expenses unless they are active-duty military.
Can I deduct expenses for my spouse and dependents? Yes. If you’re eligible (i.e., an active-duty military member moving under orders), you may include moving expenses for your spouse and dependents, provided the move qualifies.
What if I don’t meet the distance or time tests? These tests no longer apply to most taxpayers. Only active-duty military filers with a qualified move may deduct moving expenses under current law.
