Can You Deduct Your Moving Expenses?
Before Congress passed the 2017 Tax Cuts and Jobs Act, you could deduct moving expenses if you were making your move because you were starting a new job in a different location or your employer transferred you to a new job that required a move. By claiming these deductions, you could lower your income tax bill for the year in which you moved.
You did have to meet certain requirements to qualify for this deduction: Your new job had to be far enough away from your old home, and you needed to start your new job shortly after your move.
The Tax Cuts and Jobs Act, though, eliminated these deductions. Today, only one group of movers can deduct their moving expenses: active-duty members of the U.S. military who are moving because of a permanent change of station.
Members of the military can only deduct their moving expenses if the U.S. government isn't reimbursing them for the move.
What expenses are deductible?
If you are a member of the military who qualifies, which moving expenses can you deduct from your income taxes?
The IRS considers most expenses involved in a move to be eligible for a tax deduction. This includes:
- The cost of professional movers
- The cost of renting a moving truck
- The fees you pay to store items during and after a move
- The costs of traveling to your new home, whether you are taking a flight or driving
- The money you spend on packing materials and cleaning supplies
- The fees for any hotel rooms you stay in during your move
- The money you pay for moving insurance
You can’t, though, deduct the cost of any meals that you purchase during your move. This includes meals you purchase when you are in transit to your new home. You also can’t deduct the cost of any groceries you buy once you arrive at your new home.
How to deduct your moving expenses
If you are a member of the U.S. military who is moving because of a permanent change of station, fill out IRS form 3903 to calculate how much you can deduct.
When filling out this form, you'll list your shipping and storage costs for your move on line 1. This includes whatever you paid for insuring the items you are moving, the costs of renting a moving truck and the costs of hiring movers.
You'll list your travel, gas and lodging costs on line 2. This includes any money you spent on lodging during your move and the money you spent on gas during the move.
Attach your completed Form 3903 with your income taxes when you file. The moving expenses you claim will lower the amount of income taxes you owe. You can report your moving expense deduction on IRS Form 1040 on line 14 under Adjustments to Income.
Of course, taxes can be complicated, and rules often change quickly with little notice. Be sure to get professional advice.
