Most moving expenses are not tax deductible anymore

The Moving Expense Deduction was largely eliminated in 2018. For most people and most moves, you cannot deduct what you spent on a moving truck, boxes, movers, travel to a new home, or temporary housing. The IRS removed this deduction for tax years 2018 through 2025 as part of the Tax Cuts and Jobs Act.

There is one narrow exception: if you are on active duty in the military and you move because of a military order, you may still deduct certain moving costs. This exception does not apply to civilian moves, retirement moves, or moves taken for a new job in the private sector.

If you moved before 2018 or after 2025 (when the deduction may return), the rules were or will be different. But for the tax years most people are filing now, the answer is straightforward: you cannot deduct it.

Key Takeaways

  • Moving expenses stopped being tax deductible in 2018 for nearly all taxpayers and will remain non-deductible through 2025.
  • Active duty military members can still deduct moving costs when they relocate under military orders, but civilians cannot.
  • The deduction covered movers, trucks, travel, and temporary housing when it existed, but those costs are now personal expenses.
  • If you moved in 2017 or earlier, you may have been able to deduct these costs on that year's return, but not on current returns.

What the old deduction covered (and why it matters now)

Before 2018, the moving expense deduction covered several categories: the cost of hiring movers or renting a truck, transportation of your household goods, travel to your new home (including lodging and meals during the move), and temporary housing while you waited to occupy your new place. You had to itemize deductions to claim it, and there were distance and time tests you had to meet.

Understanding what used to be deductible helps clarify why the IRS no longer allows it. The deduction was tied to a job move — you had to move for work reasons and meet a 50-mile distance test. Once Congress decided to suspend the deduction, all those categories went away at once. There is no partial deduction, no exception for certain types of moves (except military), and no way to claim pieces of it separately.

The military exception: who still qualifies

If you are on active duty in the U.S. Armed Forces and you moved because of a military order, you can still deduct moving costs. This applies to moves within the United States and moves to or from a foreign country. The move must be connected to your military duty station assignment.

To claim this deduction, you will need your military orders showing the move was required. The deductible costs include hiring movers, renting trucks, transporting household goods, travel to the new location, and temporary lodging. You do not have to itemize deductions to claim military moving expenses — you can take the standard deduction and still deduct these costs.

Reserve and National Guard members on active duty orders may also may have access to, but the order must be for active duty service, not for training or weekend duty. If you are unsure whether your orders meet the test, the IRS publication 3 (Armed Forces Tax Guide) has the full rules, or you can ask a tax professional who works with military taxpayers.

Why you cannot deduct a job-related move anymore

Many people move for a new job or a job transfer. Before 2018, you could deduct those moving costs if the new job was at least 50 miles farther from your old home than your old job was. That rule no longer exists for civilian employees.

The suspension applies even if your employer pays for the move or reimburses you. If your employer gives you money to cover moving costs, that reimbursement is now taxable income to you (with limited exceptions for certain accountable plans). You cannot offset that income by deducting the moving expenses yourself.

The only exception to this rule is the military exception already described. If you are a civilian contractor or employee moving for a private-sector job, you have no deduction available, regardless of distance or how much the move costs.

What to do if your employer reimburses moving costs

If your employer pays for your move or reimburses you for moving expenses, the amount is usually taxable income. Your employer should report it on your W-2 form in box 1 (wages, tips, other compensation). You will owe income tax on that amount.

There is a narrow exception for certain accountable plans. If your employer has a formal plan that requires you to account for the expenses (by submitting receipts) and requires you to return any excess reimbursement, the reimbursement may not be taxable. These plans are rare and have strict rules. Ask your employer's payroll or HR department whether they use an accountable plan for moving reimbursements.

If you are unsure whether a reimbursement should be taxable, check your W-2 when you receive it. If the amount is in box 1, it is taxable income and you will report it as wages. You cannot deduct the moving costs to offset it.

Moves that were deductible before 2018

If you moved in 2017 or earlier and paid moving expenses, you may have been able to deduct them on that year's tax return. The rules then were: you moved for a new job or job transfer, the new job location was at least 50 miles farther from your old home than your old job was, and you worked full-time at the new location for at least 39 weeks in the first 12 months after the move.

If you filed a return for 2017 or an earlier year and did not claim this deduction, you generally cannot go back and claim it now. The statute of limitations for amending a return is usually three years from the original due date. If more than three years have passed, you cannot file an amended return to claim the deduction.

If you filed a return for 2017 and claimed the deduction but the IRS later disallowed it, you may have options depending on when the disallowance occurred. A tax professional can review your situation and advise whether an amended return or appeal is possible.

What happens if the deduction returns after 2025

The moving expense deduction is scheduled to expire after December 31, 2025. Congress may extend it, modify it, or let it disappear permanently. There is no way to know now what the rules will be for 2026 and beyond.

If you are planning a move in 2026 or later, do not assume you will be able to deduct the costs. Wait for Congress to act and for the IRS to publish updated guidance. If the deduction does return, the rules may be different from what they were before 2018.

Frequently Asked Questions

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

No, not for tax years 2018 through 2025. The moving expense deduction was suspended for civilian employees. The only exception is active duty military members moving under military orders. If your employer reimburses you, that reimbursement is taxable income, and you cannot deduct the moving costs to offset it.

What if I am in the military and moved in 2018 or later?

You can deduct moving costs if you moved because of military orders. You will need a copy of your orders showing the move was required by your duty assignment. Deductible costs include movers, trucks, travel, and temporary housing. You do not have to itemize deductions to claim this.

Can I deduct moving costs if my employer paid for them?

The reimbursement is usually taxable income reported on your W-2. You cannot deduct the moving costs to offset that income. A rare exception exists for accountable plans that require you to submit receipts and return excess reimbursements — ask your employer whether they use one.

I moved in 2017 and did not deduct the costs. Can I claim them now?

You can file an amended return for 2017 if it has been fewer than three years since you filed the original return. If more than three years have passed, the statute of limitations has closed and you cannot amend. A tax professional can review your specific dates and advise whether an amended return is possible.

Will the moving deduction come back after 2025?

The deduction is scheduled to expire after 2025, but Congress may extend or change it. There is no certainty about what the rules will be for 2026 and beyond. Do not plan a move based on the assumption that the deduction will return.