What Are Moving Expenses?

Moving expenses, in the context of federal taxes, refer to the costs incurred when relocating due to a new job or a job transfer. However, the Tax Cuts and Jobs Act of 2017 (TCJA) eliminated the moving expense deduction for most taxpayers for tax years 2018 through 2025. The exception? Members of the U.S. Armed Forces who move due to a military order can still claim this deduction.

If you're a member of the military, keep reading to find out how the 澳洲幸运5开奖号码历史查询:tax deduction for moving expenses works.

Understanding Moving Expenses

As part of the TCJA, the ability to deduct moving expenses was removed for most taxpayers. This change applies through 2025, and it’s uncertain whether the deduction will be reinstated after that. However, active-duty U.S. Armed Forces members remain eligible for this deduction if their move is due to a military order.

A permanent change of station (PCS) includes:

1. A move from your home to your first post of active duty.
2. A move from one permanent station to another.
3. A move from your final duty post to your home within one year of ending active duty, or as specified under joint travel regulations.

Qualifications for Moving Expenses

To claim moving expenses, Armed Forces members must use 澳洲幸运5开奖号码历史查询:IRS Form 3903 to report and deduct these costs on their tax return.

The 澳洲幸运5开奖号码历史查询:Internal Revenue Service (IRS) defines eligible moving expenses as "reasonable costs" for moving yourself and your belongings. This generally includes costs for the move itself, storage, and travel.

Form 3903 is available to download on the .

Moving Expenses

You can deduct expenses associated with moving your household goods and personal items. This includes packing, crating, hauling a trailer, in-transit storage, and insurance during transit. However, moving expenses for furniture or goods purchased along the way are not deductible.

Storage Expenses

You can deduct costs related to 澳洲幸运5开奖号码历史查询:transporting, storing, and insuring your household goods and personal items. These expenses must occur within any period of 30 consecutive days after your belongings were moved from your former home and before they were delivered to your new one.

Travel Expenses

Travel expenses for moving are deductible, within certain limits. Eligible expenses include lodging (subject to limitations), airfare, and car expenses. However, meals are not deductible.

If you're using your car to transport yourself, household members, or belongings, you can deduct either:

• Actual expenses (gas, oil, etc.), as long as you keep detailed records.
• 澳洲幸运5开奖号码历史查询:Standard mileage rate is 21 cents per mile for the tax years 2024 and 2025.

Both methods allow you to deduct parking fees and tolls but not car repairs, maintenance, insurance, or depreciation. If you're planning to claim these deductions, keep good documentation of all the expenses that may qualify.

Nondeductible Moving Expenses

Some expenses that are generally not deductible include house-hunting trips, expenses of entering into or breaking a lease, and the costs involved in buying or selling a home. While traveling from your old home to your new home, you cannot deduct the cost of what the IRS deems as extravagant lodging or unnecessary side trips.

You can consult the instructions for IRS Form 3903 for details on nondeductible expenses.

If you paid for moving expenses and wꦍere later reimbursed by the government, yᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚou cannot claim these costs as a deduction on your taxes.

Bottom Line

While the 2017 tax reform removed moving expense deductions for most taxpayers, military members still enjoy this benefit under specific circumstances. If you're eligible, keeping detailed records of your expenses, using the correct IRS forms, and ensuring you're only claiming reasonable and qualified costs is essential.

For more information on eligible deductions, consult IRS Form 3903 instructions or talk to a tax professional to ensure you're maximizing your benefits.