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Are moving expenses tax deductible?

4 min read

Published January 9, 2025

Table of contents

Key Takeaways

Because of updated tax rules, most people may not qualify for a tax deduction for moving expenses.
Currently, only active Armed Forces members may still qualify for a moving deduction on their federal tax return.
Every cost for a move may not be eligible for a moving expense deduction, you should check tax laws first.

Moving can be an exciting adventure, but it can also be costly. That's why it's important to explore every opportunity to save some extra money. One question you may have during a move is whether your moving expenses are tax deductible.

When can you deduct moving expenses?

According to the Internal Revenue Service's (IRS) website, the IRS used to allow a moving tax deduction for people who relocated for work and those in the military. After the United States 2017 Tax Cuts and Jobs Act, the rules for getting a moving expense tax deduction changed. Moving expenses for most people are no longer deductible according to the IRS publication.

In general, unless you're an active Armed Forces member, you may not qualify for a moving tax deduction. Still, it's a good idea to keep track of your moving expenses because some states may allow deductible moving expenses on your state tax return (if you meet specific requirements).

Moving tax deductions for active Armed Forces members

If you serve in the Armed Forces and have an active status, you may still be eligible for the federal moving deduction. This is because military members may have to relocate as a result of a permanent change of assignment. According to information from the IRS, regardless of employment requirements or the distance of your move, if you're an active member of the Armed Forces, you can claim your moving expenses on IRS Form 3903.

You can download IRS Form 3903 directly from the official IRS website. Make sure you have the latest version, as tax laws can change.

How to deduct moving expenses

Some states may still allow a moving tax deduction on your state tax return. If you live in one of those states, here are a few tips on how to keep track of deductible moving expenses:

Keep every single receipt

Do not underestimate the importance of keeping your moving cost receipts. Every penny spent could make a difference.

Organize yourself: Consider having a folder or envelope where you can put all the receipts related to the move. This will help you not to lose them and to have everything in order when you need it.
Digitize: It might be useful to scan or take a photo of your receipts. This way, you will have a backup copy in case the paper version gets lost.

Know when to ask for help

There is nothing wrong with getting help with your taxes. Here is when it may be in your best interest to do so:

You have a complex issue: If your move has many variables or you have complex expenses, it might be helpful to get expert advice.
You're unsure about your tax return: Not every moving cost is a tax-deductible moving expense. If you have questions about your expenses or are not sure how to interpret a part of your state's form, it's best to ask an expert.

There are many online resources, where you can find answers to your tax moving expense questions, including the official site for the IRS. You should also consider consulting an accountant or a tax advisor.

How to save on moving costs

Even if you cannot take a moving expense deduction, there are other ways that you could save money:

DIY your move: If you're looking to cut back on some of your costs, opt to do more moving tasks yourself (if possible) versus hiring moving services. You can also see if any of your friends or family members can help you with moving.
Shop around: If opting out of moving services is not an option for you, you can still save on your personal moving expenses by shopping around. Compare the rates and reviews of professional movers and select the right one for you.
Get free boxes: Sometimes you can get free boxes from your local grocery store or retailer. Check with your local store to see if that is an option.

Lastly, when you use a credit card with a cash back rewards program, you may be able to get some of your moving costs back.

Did you know?

With Discover, you earn cash back not points. So, every $1 you earn is worth $1 when you redeem.¹ That's extra funds that you can use for household goods, appliances, and other things for your new home.

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Moving can be stressful and expensive, but fortunately, the United States tax system offers some help in reducing the cost of moving. Always remember to check the latest tax rules and, if in doubt, ask an expert.

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