Are Moving Expenses Tax Deductible? (Current Year Guide)

Here’s the thing: If you are asking about your federal tax return (the one you send to the IRS), the answer for the vast majority of Americans is no.

It wasn’t always this way. Before 2018, if you moved for a new job and met certain distance requirements (the old “50-mile rule”), you could deduct the cost of the movers, the truck, and even the travel. It was a nice perk that encouraged people to chase opportunities in new cities.

But then came the Tax Cuts and Jobs Act (TCJA) of 2017.

This piece of legislation suspended the moving expenses tax deduction for non-military individuals for tax years 2018 through 2026. Unless Congress acts to extend it or make it permanent, we might see it come back in 2026. But for right now? Most of us are out of luck.

Does it sting? Absolutely. Especially when you see the price of cardboard boxes these days. But don’t click away just yet – because if you live in specific states or wear a uniform for a living, this guide could still save you thousands.

So, who are the lucky few? Currently, the IRS keeps the velvet rope up for one specific group: the U.S. Armed Forces.

Okay, let’s say you are military, or you live in one of the states we’ll discuss later. You need to know exactly what you can claim. You can’t just throw a dinner receipt from a steakhouse into the pile and hope for the best.

Here is what generally counts as a legit moving expenses tax deduction:

• Transportation of Household Goods: This is the big one. The cost of the moving company, the U-Haul rental, the packing services (yes, even the labor), and shipping your car. (Note: If you are dealing with non-traditional housing, figuring out how much does it cost to move a mobile home falls under this transport umbrella if you meet military criteria).
• Storage: You can deduct the cost of storing and insuring your stuff for up to 30 consecutive days after your things leave your old home. If your new house isn’t ready and your stuff sits in a warehouse for three weeks? Deductible.
• Travel to the New Home: This includes the gas and oil for your car (or the standard mileage rate, which fluctuates, so check the current year’s rate – it’s usually around 21-22 cents per mile for moving).
• Lodging: If the drive takes more than one day, the hotel cost for you and your family is deductible.

This is where people get tripped up. I once had a client ask if he could deduct the “emotional distress” of moving. (I wish, buddy. I really wish.)

Even if you are eligible, the IRS draws a hard line on these:

• Meals: This is a big change. You used to be able to deduct a percentage of meals while traveling. Now? No meals. Not even a drive-thru burger on the road.
• House Hunting Trips: The cost of flying out to find an apartment before the actual move? Not deductible.
• Lease Fees: The cost to break your old lease or the security deposit on the new one is not considered a moving expense.
• Return Trips: Driving back to your old town to visit friends? Definitely not.

If you’re one of the lucky ones who can answer “Yes” to is moving expenses tax deductible, here is how you actually get the money.

You don’t need to be a CPA to figure this out, but you do need to be organized.

“Jason,” you might say, “I’m not in the military. Is there any hope for me?”

Actually, yes.

We live in a federal system, which means your state doesn’t always have to agree with Washington D.C. When the federal government suspended the deduction, some states said, “Nah, we’re keeping it.”

If you live in (or moved to) one of these states, you might still be able to claim moving expenses tax deduction on your state income tax return:

1. California: The Golden State generally did not conform to the federal suspension. You can still deduct moving expenses on your California return if you meet the old distance and time tests.
2. New York: Similar to California, New York allows the deduction.
3. Pennsylvania: They have a specific schedule (Schedule UE) where moving expenses can sometimes be claimed as unreimbursed business expenses.
4. Massachusetts: Still allows it for certain moves.
5. New Jersey: Also decoupled from the federal ban.
6. Arkansas & Hawaii: Both have provisions allowing this.

Okay, so maybe you’re a civilian moving from Florida to Texas (no state income tax in either, so no state deduction). Are you totally out of luck?

Not necessarily. As a logistics guy who hates seeing people waste money, here are a few other angles to consider.

1. The “Donation” Deduction: Moving is the perfect time to purge. If you donate that old sofa, the clothes that don’t fit, and the books you’ll never read to a registered charity (like Goodwill or Salvation Army), you can claim a charitable deduction if you itemize. Get a receipt. It’s not a moving expense, strictly speaking, but it puts money back in your pocket.
2. Negotiate the “Gross Up”: If you are moving for a job, bring up the tax issue with your new employer. Say, “I know the relocation reimbursement is taxable now. Can we increase the signing bonus or the relocation package to cover the tax hit?” You’d be surprised how many HR departments have a budget for this. Also, if you are handling a specialty relocation, always factor the complete moving mobile home cost into your initial employer negotiations.
3. Home Office Deductions: If you are self-employed (like my sister), your move might involve setting up a new home office. While the move itself might not be deductible, setting up your new workspace might be a business expense.

Moving is chaotic. Between trying to figure out which box has the coffee maker and making sure the dog doesn’t bolt out the open door, taxes are usually the last thing on your mind.

But knowing where you stand on are moving expenses tax deductible can save you from a nasty surprise next April.

If you’re military, thank you for your service – and please, file that Form 3903. It’s your money. If you’re a civilian, focus on negotiating a better relocation package with your employer to offset the tax hit.

And if you need to find a mover who won’t rip you off – tax deduction or not – that’s where we come in. At All Movers, we help you compare vetted, reliable companies so you can focus on getting settled, not getting scammed.

Let’s get you moving. And hey, keep those receipts anyway. You never know when the laws might change again.