No, moving expenses are no longer tax deductible for most people under federal law after the Tax Cuts and Jobs Act of 2017 – with rare exceptions for active-duty military members.
According to a 2022 National Small Business Association survey, tax code complexity ranks among the biggest headaches for small-business owners. The shifting rules on moving expense deductions exemplify this confusion, leaving many taxpayers unsure what they can or cannot write off. But don’t worry – this comprehensive guide breaks down everything clearly.
In this guide, you’ll learn:
- 🚫 Federal Tax Law Changes – Why the 2017 Tax Cuts & Jobs Act ended moving expense deductions (and the one big exception to the rule).
- 🗽 State Loopholes – How some states (like California and New York) still allow moving expense write-offs despite the federal ban.
- ✅ Qualified vs. Non-Qualified Costs – Which moving expenses count as deductible (packing, shipping, etc.) and which ones the IRS disallows (meals, new furniture, and more).
- 🧳 Real-World Scenarios – Three example situations (civilian, military, and business moves) illustrating who can still claim moving expenses and who can’t.
- ⚠️ Avoiding Pitfalls – Common mistakes taxpayers make with moving expenses (from misclaiming deductions to handling employer reimbursements) and how to stay on the IRS’s good side.
Why the Moving Expense Deduction Vanished in 2018 (Federal Rules Explained)
Federal tax law no longer allows moving expense deductions for the vast majority of taxpayers. The culprit is the Tax Cuts and Jobs Act (TCJA) of 2017, which eliminated the moving expense deduction for tax years 2018 through 2025. Prior to this change, you could deduct certain moving costs if you moved for a new job or business location and met specific distance and time criteria. Now, under the TCJA, most individuals cannot claim any moving costs on their federal income tax return.
Why did this deduction get axed? The TCJA was a sweeping tax overhaul aimed at simplifying the tax code and offsetting rate cuts by removing several deductions. The moving expense deduction was one casualty of this reform. In practical terms, this means if you moved for work anytime from 2018 onward, you generally get no federal tax break for your moving bills. Even if you spent thousands on a long-distance relocation for a new job, those expenses are not deductible on your Form 1040 (unlike in years past).
There is one notable exception: Active-duty members of the U.S. Armed Forces ordered to move to a new permanent duty station can still deduct unreimbursed moving expenses. This carve-out was preserved by the TCJA to benefit military families. Apart from military moves, however, Congress essentially put moving deductions on hold until 2026. Unless new legislation extends the ban, the deduction is scheduled to return in tax year 2026 (when the TCJA provisions sunset). But for now, civilian taxpayers are out of luck at the federal level.
What about employer reimbursements? Before 2018, if your employer paid for your moving costs, that payment could be excluded from your taxable income. Now, under current law, any moving expense reimbursement or allowance you receive from an employer is generally taxable income (again, with an exception for military moves).
In other words, your company’s help with relocation will show up as wages on your W-2, and you can’t deduct the expenses either – a double whammy for employees. Some employers respond by “grossing up” relocation packages (adding extra money to cover the taxes on the reimbursement), but that’s at their discretion. The IRS treats non-military moving benefits as fully taxable, so plan accordingly.
Summary: For most people, the federal moving expense deduction is gone. The IRS will simply not allow a moving cost write-off on your 2024 or 2025 return (unless you’re an active-duty military member on orders). However, a handful of states have their own rules, and military taxpayers still get a break. Next, we’ll explore those state-level exceptions and exactly who can deduct moving expenses under current law.
Which States Still Allow Moving Expense Deductions?
Even though the IRS says no, your state might say yes. Tax laws vary by state, and some states chose not to conform to the federal elimination of moving expense deductions. This creates a quirky situation: you can’t deduct moving costs on your federal return, but you might be able to on your state income tax return, depending on where you live.
States that decoupled from the federal change still permit a moving expense deduction (and often continue to exclude employer-paid moving reimbursements from state taxable income). For example, California and New York famously did not adopt the federal suspension of moving deductions.
If you moved for work and meet the prior federal criteria, those states allow you to claim the deduction on the state return. In these states, qualified moving expenses can be subtracted when calculating state taxable income, even though they’re disallowed federally.
Each state has its own approach. A few states automatically follow all federal tax changes, so they eliminated the deduction in tandem with the TCJA. Others explicitly passed laws to keep the moving deduction alive at the state level. New York State, for instance, “decoupled” from the TCJA provision – meaning New Yorkers can continue to deduct qualifying moving costs on their NY tax return for 2018–2025.
California similarly allows the deduction and doesn’t tax qualified employer moving reimbursements. A handful of other states (such as Massachusetts, New Jersey, and Arkansas) have their own nuances or partially conforming rules. And in states with no income tax (like Texas or Florida), this issue is moot since there’s no state tax return at all.
The key takeaway: Check your state’s tax guidelines. If you moved for a job or business, you might still get a state tax deduction or exclusion, even though your federal 1040 shows nothing. State eligibility often mirrors the old federal rules (job-related move, distance, time worked, etc., which we’ll detail below).
Claiming a moving deduction on a state return may involve an extra form or calculation, but it can save you money. Just be careful – what’s allowed for state purposes won’t affect your federal return. You should keep records of your moving expenses in case your state tax authority asks for proof.
In summary, state-level variations offer a small silver lining. While Uncle Sam isn’t giving you a break for moving right now, places like CA and NY might. Always verify the current rules for your state (they can change via new legislation), and consult a tax professional if unsure. Now let’s talk about who actually qualifies to deduct moving expenses under any of these rules.
Who Can Still Deduct Moving Expenses? (Eligibility Rules)
Given the federal suspension, eligibility is extremely limited. At this point, on your federal taxes, the only people who can deduct moving expenses are active-duty military members (or their spouses/dependents) moving due to a military order.
If you’re a civilian taxpayer (employee, self-employed, or retiree), you do not qualify for any federal moving expense deduction through 2025. It doesn’t matter how far you moved or how expensive it was – under current law, non-military moves simply aren’t deductible.
Active-duty military moves: To qualify, the move must be pursuant to a military order and a Permanent Change of Station (PCS). This includes moves from one base to another, separation or retirement moves, or a move for a new duty assignment. Spouses and dependents of a servicemember can also claim the deduction in certain cases (for example, if the military member dies or is imprisoned, and the family moves as a result). Military taxpayers use the same IRS Form 3903 to calculate moving expenses, and the deduction appears as an adjustment to income on Form 1040 (meaning you don’t need to itemize to claim it).
The military move exception is quite broad: it doesn’t require meeting any “distance test” or “time test” – you simply need orders for a qualifying relocation. Virtually any reasonable unreimbursed moving costs (see next section for what counts) can be deducted for a PCS move. Importantly, any moving expenses reimbursed by the government or paid directly (and excluded from your income) cannot also be deducted.
State eligibility: If you’re in a state that still allows moving deductions, the eligibility criteria typically mirror the old federal rules that were in place pre-2018. Under those old rules, your move had to be work-related and meet two key tests: a distance test and a time test. The distance test required that your new job location be at least 50 miles farther from your old home than your old job location was.
(In plain language: moving far away for a new job, not just a short commute change.) The time test required that after the move, you work full-time in the new area for a certain period – at least 39 weeks in the first 12 months after moving for employees, or 78 weeks in the first 24 months if self-employed. These tests were designed to ensure the move was for long-term work, not just a temporary stint.
There were exceptions to the time test if you were laid off or unable to complete the period for reasons beyond your control, but generally you had to plan on staying employed in the new location. Additionally, under old rules, you couldn’t have your moving costs already reimbursed by your employer (unless that reimbursement was included in your income) – no double dipping.
So, if your state still allows it in 2025, you’ll need to tick those same boxes: your move should be closely connected to starting a new job or business, far enough to qualify, and you stayed long enough in the new location. Keep documentation because you may have to prove to the state tax authority that you met the conditions.
Who is not eligible? Essentially everyone else. If you moved for personal reasons (e.g. retirement, to be closer to family, for a change of scenery) – never deductible. If you’re a student moving to college or a recent grad moving for a first job – not deductible on federal returns (and only on state if that first job meets the tests).
If you’re a civilian Department of Defense or government employee (not active military) who got relocated, unfortunately you also don’t qualify under the federal rules. (Notably, a recent U.S. Tax Court case denied a moving expense deduction to a civilian Air Force employee who was ordered to a new work location – because the law’s exception applies only to armed forces members on active duty.) The bottom line is that until the law potentially changes in 2026, no civilian moves can be deducted on federal taxes, and only a few states offer any relief.
Next, let’s assume you are among the lucky few who can still claim moving expenses (or you’re curious about what would have been deductible before). We need to distinguish what kinds of moving costs are considered “qualified” and which are not. Not every dollar you spend moving is tax-deductible, even if you’re eligible. Let’s break down the types of expenses.
What Moving Expenses Are Deductible (Qualified vs. Disallowed Costs)
Even in the days when everyone could deduct moving expenses, the IRS set strict limits on what expenses qualified. Understanding these rules is important – especially for military filers now, and for the possibility that deductions return after 2025. Here’s a rundown of allowable vs. non-allowable moving costs:
Qualified Moving Expenses (Allowed Costs)
If you’re eligible to deduct moving costs, the IRS lets you write off reasonable expenses directly related to the move of your household goods and personal effects, and travel to your new home. Some examples include:
- Transportation of your belongings: Costs to hire a moving company, pay movers, rent a moving truck or trailer, or ship your household goods from your old home to your new home. This also includes shipping your vehicle to your new location, if you don’t drive it, and even the cost of moving your pets to the new home (your cat or dog’s transportation is considered part of moving your personal effects!).
- Packing and crating: Money spent on packing supplies (boxes, tape, bubble wrap) and services to pack or crate your belongings. If you pay packers or incur expenses to safely prepare items for shipment, those costs are deductible.
- Storage fees (limited): The cost to temporarily store your household items in transit, for up to 30 days after you leave your old home and before they arrive at your new home, is deductible. For example, if you need to store furniture for a couple of weeks while waiting to move into your new place, that storage expense counts.
- Travel costs for you and your family: This includes the one-way trip to your new home for all members of your household. You can deduct airfare, train, or bus tickets, or if you drive your own car, you can deduct either actual gas and oil or a standard mileage rate for moving (plus tolls and parking fees). Lodging during the move is also deductible – for instance, if it’s a long drive and you have to stay in a hotel for a night on the road, that hotel cost is a moving expense. These travel expenses must be reasonable and directly related to the move (no lavish detours or vacations en route).
In short, think of qualified moving expenses as the nuts-and-bolts costs of physically moving you, your family, and your stuff to a new home when you relocate for work. If you’re a military member claiming the deduction, these are the types of expenses you’ll list on Form 3903. If you’re a civilian planning for 2026 and beyond, keep these in mind as the kinds of costs that would qualify again if the deduction returns.
Non-Deductible Moving Expenses (Disallowed Costs)
Many common moving-related expenses do NOT qualify for any deduction, even for those who are eligible. It’s important not to over-claim. The following are never deductible as moving expenses under IRS rules:
- Meals and food on the road: You cannot deduct the cost of meals while traveling to your new home or during your moving process. So, all those fast-food stops or dinners along the highway are on your own dime (no tax relief here). The deduction covers travel and lodging, but specifically excludes meals.
- House-hunting trips and pre-move visits: If you travel to the new location before actually moving (to search for a new house or apartment, check out neighborhoods, or visit the area), those trip costs are not deductible. Only the expenses of the final move count – not exploratory or planning trips.
- Costs of buying or selling a home: Expenses like real estate agent commissions, title fees, closing costs, or mortgage penalties tied to selling your old home or buying a new one are not moving expenses for tax purposes. These are considered separate personal or capital expenses. (You might have other tax implications from selling a home, but they don’t fall under moving expense deductions.)
- Lease-breaking fees and home setup costs: If you had to break a lease to move, any penalties or fees you paid are not deductible. Similarly, utility connection/disconnection fees, deposits for new utilities, or costs to set up cable/internet in the new home are not considered part of the deductible moving costs.
- New furniture or home improvements: Did you buy new furniture or décor for the new place? That’s a personal expense, not a moving expense. Likewise, if you did repairs or improvements to either home related to the move (like fixing up your old house to sell it, or making repairs in your new one), those costs are not deductible as moving expenses.
- Temporary living expenses beyond the move: Maybe you had to live in a short-term rental or hotel for a month after starting the new job, while searching for permanent housing. Unfortunately, those post-move living costs (beyond the immediate travel and lodging during the move itself) are not deductible. Only lodging during the actual transit from old to new locale counts.
- Anything reimbursed that wasn’t taxed: If your employer (or the government, for military) reimbursed you for a moving expense and did not include that reimbursement in your taxable wages, you cannot deduct that expense. This stops double-dipping. For example, if the military paid for your movers directly and that benefit was tax-free to you, you cannot also claim that moving company cost on Form 3903. (If an employer reimbursement was included in your income, then the expense could potentially be deducted – but at the federal level today, employers typically don’t include moving stipends in income unless you’re military, because for civilians it’s just always taxable anyway.)
In summary, non-deductible costs cover pretty much anything that isn’t the direct cost of transporting you/your goods. When in doubt, ask: “Is this expense necessary to physically move me and my stuff to the new location?” If not, it’s likely not deductible. Be very cautious to only claim allowed expenses – the IRS knows the rules have changed, and improper claims (like a sneaky meal or a house-hunting flight) can be caught in an audit. Now, let’s bring this all together with some concrete examples of different moving scenarios and their tax outcomes.
3 Example Scenarios: Who Gets to Deduct Moving Expenses?
To clarify how these rules play out, here are three common moving scenarios and whether the taxpayers involved can deduct their moving expenses. This should help illustrate the nuances of federal vs. state rules and the military exception:
| Scenario | Can They Deduct Moving Costs? |
|---|---|
| John – a civilian employee who moved 500 miles in 2023 for a new job with a private company. | No (Federal): John cannot deduct his moving expenses on his 2023 federal return because the deduction is suspended for non-military taxpayers. It doesn’t matter that his move was work-related and far – the IRS won’t allow it. If John lives in a state like California or New York that still permits moving deductions, he could claim eligible moving costs on his state tax return. Otherwise, he gets no tax relief for this move. Also, if John’s employer reimbursed him for any moving costs, that reimbursement is taxable income to him under federal law. |
| Maria – an active-duty Army officer relocated to a new base in 2024 under official Permanent Change of Station (PCS) orders. | Yes (Military Exception): Maria can deduct her qualified moving expenses on her federal tax return. She will use Form 3903 to list costs like movers, shipping her car, and travel to the new base. Those expenses will reduce her adjusted gross income. Additionally, any moving allowance or reimbursement the military provided will not be taxed to Maria (and thus she won’t deduct those particular covered costs). Because she’s moving on military orders, Maria gets the full benefit of the moving expense deduction. (On her state return, most states also honor this military move deduction, even states that disallowed civilian moves.) |
| ACME Corp – a business that moved its main office and equipment from Illinois to Texas in 2025. (Also consider the owner, Jack, who moved himself from Illinois to Texas to follow the business.) | Yes (Business, No for Personal): ACME Corp (a company) can deduct the costs of moving business property, equipment, and office furnishings as a business expense on its corporate tax return. Business moving expenses are considered ordinary business costs. However, ACME’s owner, Jack, who personally relocated his family to Texas, cannot deduct his personal moving expenses on his individual federal return (since he’s not military). If Jack paid himself a relocation bonus through the company, that payment would be taxable compensation to him. In short, the company’s relocation costs are deductible to the company, but the individual’s household move is not deductible to the individual. (If Jack’s move qualifies under a state that allows it, he might get a state deduction personally.) |
Why these outcomes? John’s case shows that, post-TCJA, typical job-related moves don’t get a federal deduction anymore. Maria’s case highlights the lone exception for military personnel, who still can claim moving costs. ACME Corp’s scenario underscores the difference between business expenses vs. personal expenses: businesses moving offices can treat it as a cost of doing business (fully deductible on the business return), but an individual moving their home for that job cannot deduct it on a personal return. Always consider both federal and state rules – as seen above, state law can occasionally offer a deduction where federal doesn’t.
Pre-2018 vs. Post-2018: How Moving Deduction Laws Changed
It’s helpful to summarize the differences between the “old” moving expense deduction (before 2018) and the current law (2018–2025 under the TCJA). The table below highlights key points:
| Aspect | Before 2018 (Old Law) | 2018–2025 (Current Law) |
|---|---|---|
| Who Could Claim | Any taxpayer who moved for a new job or to start a business, if they met distance & time tests (not limited to military). | Virtually no one except active-duty military on orders (civilian moves do not qualify at all during this period). |
| Type of Deduction | Above-the-line deduction (adjustment to income) on Form 1040. You did not need to itemize to claim it. | Deduction suspended for individuals (removed from Form 1040 except for military). Only active military can still use above-the-line deduction via Form 3903. |
| Employer Reimbursements | If qualified moving expenses were reimbursed by employer, the reimbursement was not taxable income. (Employers would report it separately and you wouldn’t deduct those costs.) | Employer moving reimbursements are taxable as wages for non-military. They appear on W-2 and increase your income. (For military moves, certain reimbursements remain tax-free.) |
| Requirements | Must pass the distance test (new workplace 50+ miles farther) and time test (≥39 weeks full-time work in first year, etc.). Some exceptions for involuntary separation, death, etc. | No tests apply because no deduction (for civilians). Active-duty military moves don’t require distance/time tests – any PCS move counts. (If deduction returns in 2026, distance/time tests would likely resume for civilians.) |
| Deductible Expenses | Costs of moving household goods, personal travel (lodging, gas), packing, storage (30 days), etc., excluding meals and other non-allowables. (Had to use Form 3903 to calculate.) | Same definition of qualified expenses for those who can claim (military). But since most cannot claim, these rules currently only matter for active-duty moves (or state deductions). The scope of qualifying vs. non-qualifying costs hasn’t changed – only who can take them. |
| Validity | Permanent feature of tax code until TCJA (had been around for decades to encourage labor mobility). | Temporarily suspended 2018–2025 by TCJA. Set to revert to old rules in 2026 unless new legislation is passed. Future of the deduction is uncertain pending potential extension of TCJA provisions. |
As shown above, the Tax Cuts and Jobs Act dramatically changed the landscape. Pre-2018, many taxpayers could and did claim moving expenses – it was a common above-the-line deduction on many returns (especially when people relocated for new jobs). Post-2018, it’s an extreme rarity on federal returns, exclusive to military filers. The shift also added a tax burden on employer relocation benefits for employees.
If you’re reading this in 2025, be aware that 2025 is the last year of the TCJA’s temporary rules. In 2026, if Congress does nothing, the old moving expense deduction rules will come back into effect for tax year 2026 onward – meaning the distance and time tests would once again allow non-military folks to deduct moving costs. Of course, Congress could choose to extend the current ban or modify it. Always stay tuned to the latest updates as we approach that date.
Pros and Cons of the Moving Expense Deduction
Is the moving expense deduction (when available) actually beneficial? Let’s weigh some potential pros and cons of this tax break:
| Pros | Cons |
|---|---|
| Reduces taxable income if you qualify (lowers your tax bill). | Not available to most people until after 2025 (federal deduction is suspended). |
| Helps offset relocation costs with some tax savings, easing the financial burden of a big move. | Strict eligibility criteria under old rules (had to move far for work and stay long enough) or military-only under current rules. |
| Still offered by some states or for military, providing a tax break even when federal law doesn’t. | Many expenses don’t qualify (no deduction for meals, house-hunting, home sale costs, etc., even if you can deduct something). |
| Encourages job-related moves by softening the blow of out-of-pocket moving expenses (was seen as pro-business, pro-labor mobility). | Risk of mistakes/IRS issues – The complexity and changing rules mean errors in claiming it could lead to audits or penalties. |
In essence, the deduction is great if you can use it – it directly saves you money on a move you had to undertake for work or service. For military families or folks in states honoring it, it’s a valuable benefit. However, the limited availability and numerous rules mean it’s not something most people can take advantage of today. And even when it is available, it doesn’t cover everything (you’ll always eat some costs that are nondeductible). Given the current federal pause, the “con” for most is that this tax break is simply off the table unless and until it returns.
Avoid These Common Moving Expense Deduction Mistakes
When dealing with moving expenses on your taxes, it’s easy to slip up given the convoluted rules and recent changes. Here are some common mistakes to avoid so you don’t run afoul of the IRS (or miss out on savings):
- Claiming a disallowed deduction: The biggest mistake is attempting to deduct moving expenses on your federal return when you’re not eligible. Many taxpayers who were used to the old rules still try to write off moving costs, not realizing the deduction was suspended. If you’re not active-duty military, do not put moving expenses on your Form 1040 (the IRS removed the line for it except for military use). Claiming it improperly will likely result in the IRS disallowing it and possibly flagging your return for review. Save yourself the trouble – unless you meet the exception, don’t claim this on federal taxes.
- Forgetting state opportunities: On the flip side, some people do qualify for a state moving expense deduction but miss it because they assume “it’s not deductible anymore.” This is a mistake that can cost you state tax dollars. Always check your state’s tax instructions. If your state decoupled from the federal rule (e.g. New York, California, etc.), you may need to fill out a state form or make an adjustment to claim the moving deduction for state purposes. Don’t leave that money on the table out of ignorance – do your research or ask a tax pro.
- Not reporting employer-paid moves correctly: If your employer reimbursed you $5,000 for moving expenses, remember that under current federal law, that $5,000 is taxable income (again, unless you’re military). A common mistake is thinking it’s tax-free or not realizing it was added to your W-2 wages. Always double-check your W-2 if you had moving benefits – the amount might be included in Box 1 wages. Failing to report it means underreporting income. Conversely, don’t try to deduct expenses that were reimbursed by your employer, at least not beyond any amount that was included in your wages. Coordinate between what you were paid and what you deduct to avoid double dipping or omissions.
- Including non-qualified costs in your deduction: We covered what’s not deductible – but it’s worth repeating. People often mistakenly try to deduct everything under the sun related to their move. Common errors include attempting to deduct meals, claiming the costs of a pre-move house-hunting trip, or tacking on costs like cleaning the old house, utility hookups, or new furniture.
- These are not allowed. If you’re eligible and filing Form 3903, make sure you’re only listing qualifying expenses (moving, transportation, storage, lodging in transit). Don’t pad it with extra personal costs. If you do, the IRS (or state) could disallow those items, and if it’s egregious, they might impose penalties. Keep receipts and be prepared to substantiate any expense you claim as part of the move.
- Poor record-keeping: If you’re in the military (or otherwise planning to claim a deduction now or in the future), maintain good documentation of your moving expenses. Save all receipts, invoices from movers, storage contracts, mileage logs, etc. A mistake some make is failing to keep proof, which can be an issue if you get audited months or years later. Also, if you’re anticipating the return of the deduction in 2026 and you plan a move around that time, you’ll want to document everything from day one. Good records ensure you can defend your deduction and also help you remember which expenses are deductible versus not.
Tip: When in doubt about a moving-related tax question, consult IRS Form 3903 instructions or Publication 521 (which the IRS updated to reflect current limitations). These resources outline exactly how to handle moving expenses. If you’re using tax software, be sure to answer the interview questions carefully (e.g. if it asks “Were you or your spouse active military and moved?” – a “no” should stop any deduction from being applied). And for state returns, watch for state-specific prompts about moving costs. By avoiding the pitfalls above, you can correctly navigate the moving expense deduction – claiming it if you’re entitled, and not mistakenly claiming it if you’re not.
FAQs: Moving Expense Deductions
Q: Can I deduct moving expenses on my 2024 federal tax return?
No. The moving expense deduction is suspended for 2018–2025 due to the Tax Cuts and Jobs Act. Unless you’re an active-duty military member, you cannot claim moving costs on your federal taxes during this period.
Q: Are any moving expenses still tax-deductible now?
Yes. Active-duty military personnel moving under official orders can still deduct qualified moving expenses on their federal return. Additionally, a few states allow moving expense deductions on state returns, even though it’s not allowed federally for most people.
Q: Can I deduct moving expenses on my state taxes?
Yes (in some states). Certain states – for example, California and New York – continue to permit a moving expense deduction on state income tax returns. It depends on your state’s law, so check your state’s tax rules to see if you qualify.
Q: Will the moving expense deduction come back after 2025?
Yes. Under current law, the moving expense deduction is set to return for tax year 2026 when the TCJA provisions expire. If Congress doesn’t extend the ban, non-military taxpayers will once again be able to deduct eligible moving costs after 2025 (using the old distance and time test rules).
Q: My employer paid for my relocation – is that benefit taxable?
Yes. For civilian moves, employer-paid moving reimbursements or direct payments are now treated as taxable income to you. The amount your employer gave you will be included on your W-2, and you cannot deduct those reimbursed expenses on your federal return. (If you’re military and it was a qualified military move reimbursement, it would be excluded from income.)
Q: Can my business deduct the cost of moving to a new location?
Yes. If you incur expenses to relocate a business (moving office equipment, machinery, inventory, etc.), those costs are generally deductible business expenses for the company. However, this doesn’t translate into a personal deduction for the business owner’s own moving household. The company can write off the move, but an owner or employee cannot deduct their personal moving expenses on an individual return under current federal rules (unless they meet the military exception or a state-specific provision).
Q: Do I need to use IRS Form 3903 to claim moving expenses?
Yes. If you are eligible to deduct moving expenses (for example, an active-duty military member or someone in a state allowing the deduction), you must fill out Form 3903 (Moving Expenses). This form helps you calculate the total qualified moving costs. The deductible amount from Form 3903 then goes on your Form 1040 (as an adjustment to income). If you’re not eligible, you won’t use Form 3903 at all on your federal return. Always follow the form instructions to ensure you’re including only allowable expenses.