Deducting Moving Expenses
Tax Law Update: Beginning with 2018 returns, moving costs are no longer deductible, unless you're in the armed services and meet certain qualifications.
Moving Expenses for Military Service Members
Military service members can still deduct unreimbursed moving costs – or much of them, anyway – from taxable income, provided you're moving because of a military order. If you're reimbursed for moving expenses or get a moving allowance, the payments are not taxable, but you don't get to deduct the expenses.
You can deduct lodging (but not meals) for yourself and household members while moving from your former home to your new home. You can also deduct transportation expenses, including airfare, vehicle mileage, parking fees and tolls you pay, but you can only deduct one trip per person.
You can also deduct the cost of packing and transporting your household goods and personal property, as well as the cost of shipping pets. If you have to store items during the move, that may qualify for deduction too. You can also deduct the costs of connecting or disconnecting utilities.
What's not deductible? Any part of the purchase price of your new home, car tags, driver’s license renewal, the costs of buying or selling your home (or entering into or breaking a rental lease), or security deposits and storage charges (other than those incurred during your move).
The IRS limits deductible moving expenses to what is “reasonable for the circumstances” of your move. For details, see Form 3903, Moving Expenses.
You can write off your moving expenses even if you don't itemize deductions. To claim the deduction, enter your expenses on our Form 3903. Our interview will help you get to the right form.