Most moving costs are not deductible anymore, but a narrow exception exists for military members

The federal tax code stopped allowing most people to deduct moving costs in 2018. If you moved for a job, changed jobs, or relocated to start work, you cannot write off those expenses on your tax return — even if your employer did not reimburse you.

The one exception: if you are on active duty in the military and moved because of a military order, you may deduct unreimbursed moving and storage costs. This applies to permanent change of station (PCS) moves. If your employer or the military reimbursed you for any portion of the move, you can only deduct the amount you paid out of pocket.

Civilian federal employees, contractors, and anyone else who moved for work have no deduction available, regardless of whether the move was required by the employer or whether you paid for it yourself.

Key Takeaways

  • The moving expense deduction was eliminated for all taxpayers except active-duty military members starting in 2018.
  • Military members can deduct unreimbursed moving and storage costs only when the move is ordered by the military, not for voluntary relocations.
  • If you received any reimbursement from your employer or the military, you can only deduct the portion you paid yourself.
  • Employer-paid moving benefits are not taxable income to you, so you receive the benefit without a tax deduction.

What counts as a deductible military move

To deduct moving costs as an active-duty service member, the move must be the result of a military order, not a personal choice. A permanent change of station (PCS) order qualifies. A voluntary move to a different base or duty station does not.

Deductible costs include transportation of household goods, storage fees, travel to the new location (including lodging and meals during the move), and temporary lodging near the new duty station for up to 30 days. You cannot deduct the cost of selling your old home, buying a new one, or improvements to either property.

Keep receipts and documentation of the military order. The IRS will ask for proof that the move was military-ordered, not discretionary. Your leave and earnings statement (LES) or military orders document should show the PCS.

How to report military moving deductions

Military members report unreimbursed moving costs on Form 3903 (Moving Expenses), then transfer the total to Schedule 1 (Other Income and Adjustments) on Form 1040. You do not need to itemize deductions to claim this — it reduces your adjusted gross income (AGI) directly.

If the military or your employer reimbursed you, you will receive a Form 2106 or a statement showing the reimbursement amount. Subtract that from your total moving costs. Only the unreimbursed portion goes on Form 3903.

File Form 3903 with your tax return for the year in which you moved. If you moved late in the year and did not file yet, you can still claim the deduction on an amended return (Form 1040-X) within three years of the original filing deadline.

Employer reimbursement and taxable income

If your employer paid for your move directly — by writing a check to the moving company, for example — that reimbursement is not taxable income to you. You do not report it, and you do not get a deduction. The benefit is already tax-free.

If your employer gave you a lump sum to cover moving costs and you kept receipts showing you spent it on the move, the reimbursement is still not taxable. However, if you spent less than the amount given and kept the difference, that difference may be taxable income. Check your employer's policy and your W-2 to see whether any moving reimbursement was reported as wages.

Military members should confirm with their finance office whether any moving allowance (BAH, dislocation allowance, or temporary lodging allowance) was already provided tax-free. If it was, you cannot also deduct the same costs.

What changed in 2018 and who it affected

Before 2018, anyone who moved for work could deduct moving costs if the move was required by the job or if the new job was substantially farther away. Teachers, nurses, engineers, and other professionals who relocated for employment could write off the expense. That deduction expired at the end of 2017.

Congress extended the military exception because service members have no choice in PCS moves — the military orders the relocation. Civilian employees, even those ordered to relocate by their employer, lost the deduction. The change was part of the Tax Cuts and Jobs Act of 2017.

If you moved before 2018 and did not claim the deduction on your return, you can file an amended return to claim it. The statute of limitations is three years from the original filing deadline. If you moved in 2017 and filed your 2017 return in 2018 without claiming the deduction, you can amend through April 2021 (or later if you filed an extension).

Frequently Asked Questions

Can I deduct moving costs if I moved for a new job?

No, unless you are on active-duty military. Civilian employees, contractors, and self-employed people cannot deduct moving costs for any reason, even if the move was required by the employer or if you paid for it entirely yourself.

What if my employer paid for the move — do I still need a deduction?

No. Employer-paid moving costs are not taxable income to you, so you receive the benefit without reporting it or claiming a deduction. You only need a deduction if you paid for the move yourself and were not reimbursed.

I am military and moved in 2017 — can I still claim the deduction?

Yes. You can file an amended return (Form 1040-X) for 2017 and claim the deduction if you did not already. You have three years from the original filing deadline to amend, so you can file through April 2020 (or later if you filed an extension in 2018).

Does the military moving deduction apply to reserve or National Guard members?

Only if you are on active duty and received a military order to move. Reserve and National Guard members on inactive status cannot claim the deduction. If you were activated and received PCS orders, you may may have access to — check with your finance office for documentation of the order.