Can You Deduct Moving Expenses on Your Tax Return?

 Introduction

If you moved in 2025 for work or personal reasons, you may wonder whether moving expenses are
tax-deductible. Under the Tax Cuts and Jobs Act (TCJA) of 2017, the moving expense deduction is
only available to active-duty military members under IRC § 217.

For most taxpayers, moving expenses are no longer deductible on federal tax returns. However,
some states still allow moving expense deductions, and employers may reimburse moving costs
tax-free.

This guide explains who qualifies, what expenses are deductible, and how to claim moving-related
tax benefits.

Who Qualifies for the Moving Expense Deduction?

1. Active-Duty Military Members (IRC § 217)

You can deduct moving expenses if:

•  You are an active-duty military member.
•  Your move is due to a military order.
•  Your move is permanent to a new station.

2. Non-Military Taxpayers

•  Most taxpayers cannot deduct moving expenses at the federal level.
•  Some states, including California, New York, and Massachusetts, still allow deductions.

Which Moving Expenses Are Deductible?

Eligible Expenses for Military Moves

•  Transportation costs (moving trucks, flights, train tickets)
•  Storage fees (up to 30 days)
•  Lodging costs during the move
•  Shipping household goods and pets

Non-Deductible Expenses

•  Meals during the move
•  Temporary housing after moving
•  Expenses reimbursed by your employer

Tax Forms: Form 3903 (Moving Expenses), Form 1040

How to Claim Moving Expense Deductions

Step 1: Confirm Eligibility

•  Only active-duty military members qualify for the federal deduction.
• Check your state’s tax laws for possible deductions.

Step 2: Gather Documentation

•  Keep receipts for transportation, lodging, and storage fees.
•  Obtain a copy of your military orders (if applicable).

Step 3: File Form 3903 (If Eligible)

•  Enter moving expenses on Form 3903.
•  Report the deduction on Schedule 1 (Form 1040), Line 14.

Are Employer-Reimbursed Moving Expenses Tax-Free?

•  Employer-paid moving expenses are tax-free for military members.
•  For non-military taxpayers, employer reimbursements are taxable income.

IRS Forms & Compliance Checklist

•  Form 1040 – Main tax return
•  Form 3903 – Moving expenses for military personnel
•  Schedule 1 (Form 1040) – Report deduction on Line 14

Conclusion

For most taxpayers, moving expenses are no longer deductible at the federal level. However,
military members on active duty can still claim moving-related tax deductions. If you received
employer reimbursement, check whether it is taxable income.

For expert tax planning, schedule a consultation with Anshul Goyal, CPA EA FCA, a licensed tax
professional and IRS representative.

Frequently Asked Questions (FAQs)

1. Can civilians deduct moving expenses in 2025?
No, only active-duty military members qualify for the federal deduction.

2. Are moving expenses tax-deductible in my state?
Some states, including California, New York, and Massachusetts, allow deductions.

3. What if my employer reimbursed my moving costs?
For non-military taxpayers, employer-paid moving expenses are taxable income.

4. Can I deduct moving expenses if I relocate for a new job?
No, job-related moves are not tax-deductible under federal law.

5. How do I claim the moving expense deduction?
Eligible military members file Form 3903 and report the deduction on Schedule 1 (Form 1040), Line

About Our CPA

Anshul Goyal, CPA EA FCA is a licensed Certified Public Accountant and an IRS Enrolled Agent (EA).
He specializes in military tax deductions, IRS compliance, and employer reimbursement tax rules.

Schedule a consultation today with Anshul Goyal, CPA, to optimize your tax savings!