What Moving Expenses are Tax Deductible?

Are moving expenses tax deductible? 

If you moved for a job prior to 2018, you likely deducted moving expenses when filing federal taxes. But the regulations changed in 2017. Now, only members of the military can claim moving deductions on federal returns.  

However, even if you’re not military, there are some states that allow moving expense deductions on state returns. Let’s review the current 2023 tax regulations so you’ll know what to expect.  

How did the Tax Cuts and Job Act of 2017 change deductions? 

The Tax Cuts and Jobs Act of 2017 was designed to simplify federal income taxes for individuals. It almost doubled the standard deduction for most U.S. citizens, but it also eliminated some deductions, including moving expenses. In addition, it changed the way you claim relocation reimbursement.  

Now, you must claim any compensation received for the move as income, including bonuses and relocation packages. 

It’s important to note that the bill may not be permanent since it only outlined the tax cuts through 2025. If the bill isn’t renewed, it’s possible that federal deductions for moving expenses might be allowed in the future. 

For current rules, consult the IRS guide for moving expense deductions.  

Tax deductible expenses for military moving 

Active-duty military members who move for a permanent change of station are still eligible to claim the following unreimbursed moving expenses on their federal taxes using Form 3903: 

• Disconnecting and connecting utilities 
• Lodging 
• Moving company fees, including packing, transportation and moving labor 
• Shipping cars or pets 
• Storage 
• Travel 
  • Car — the exact cost for gas or the standard mileage rate 
  • Airline or train tickets   
     

What states allow moving deductions?   

Even if you’re not active-duty military, on state tax returns you may be able to itemize your moving expenses or exclude compensation from moving-related income in the states below.  

Remember that state rules can change or vary. Check out the linked forms or guides for 2023 and consult your accountant or tax preparer to see if you qualify: 

Arkansas 
California 
Hawaii 
Massachusetts 
New Jersey 
New York 
Pennsylvania 

Not eligible for deductions or just want to save money on your move?  

The moving experts at U-Pack® have you covered. If you’re still in the planning stages get a free quote from U-Pack and see what makes us one of the cheapest ways to move. 

Here are some other things you can do to save money since you won’t be able to deduct the expenses: 

Handle the moving labor yourself. Packing and loading are big expenses with full-service movers, but choosing a DIY option like U-Pack is an ideal way to spend less on a move. With U-Pack, you’ll handle the packing, loading and unloading, but we’ll take care of the driving — at prices comparable to truck rental. 

Make fewer trips if possible. Before 2018 you could claim multiple trips, but now it will just cost you more money. Try to take care of things like job interviews and house shopping during the same trip to spend less on traveling. 

Compare moving companies and options. Get quotes from several different companies and compare their prices and options to U-Pack to find the best value for your money.  

Questions about filing taxes? 

Monday, April 15, 2024, is the deadline for submitting 2023 federal tax returns. Some states may have different schedules for taxes, so check with your Department of Finance to confirm the due date. 

If you have any questions about taxes or deductions you might qualify for, we recommend contacting an accountant, a tax professional or the IRS.