Are Moving Expenses Tax Deductible?

Disclaimer: We are not tax experts. Moving Help has provided this article for informational purposes only. For any questions or advice regarding taxes, please consult with a qualified accountant to help you.

Have you been putting off filing taxes? We get it. Taxes aren’t fun, but they must get done before Monday, April 15, 2024, AKA, Tax Day. One of the questions you’ll need to answer for tax season is whether you moved in 2023. If you moved last year, you might be wondering are moving expenses tax deductible? Moving Help® has the answer for you.

The short answer is no. Moving expenses aren’t tax deductible unless you’re a member of the armed forces on active duty, and because of a military order, you, your spouse, or your dependents had to move due to a permanent change of station.

Explore what makes moving expenses no longer tax deductible, if you’re eligible, learn how to claim moving expenses on your taxes, and more.

What Are Tax Deductible Moving Expenses?

Moving expenses that are tax deductible are moving household goods and personal effects and travel. Some of these expenses could be:

For example, you can claim the packing materials and packing supplies needed for your move as a moving expense. Another example of moving expenses that are tax deductible is the total cost of filling your truck rental, personal vehicle, or both. No matter what, you’ll want to make sure you keep your receipts.

Nondeductible Moving Expenses

Of course, the federal government considers some items non-deductible. Some of these items include:

For example, you can’t receive a tax deduction for selling your old home and purchasing your new home. Another example is if you had to pay fees for car tags, that won’t be counted as a moving expense.

When it comes to moving expenses for the IRS, it’ll be helpful for you to view Form 3903 and read the form’s instructions. Form 3903 will provide a more in-depth list of what moving expenses are tax deductible, what moving expenses aren’t tax deductible, along with instructions about the form’s purpose.

Eligibility Criteria for Claiming Moving Expenses

As we’ve already established, only members of the armed forces on active duty, and because of a military order, you, your spouse, or your dependents had to move due to a PCS order. Other than those reasons above, you won’t qualify to be eligible for claiming moving expenses.

For example, if you move from Texas to Hawaii for a PCS order, this will qualify your moving expenses to count toward a tax deduction.

An example where it wouldn’t count is if you moved from California to Tennessee for a new sales job, you wouldn’t qualify for a tax deduction.

Tax Cuts and Jobs Act

Since it’s 2024, we’ll still have one more year with this law in place unless Congress creates a new law or extends the end of the current law. We’ll know in the future whether more taxpayers can file moving expenses as a tax deduction or Congress only limits it to members of the armed forces on active duty.

How to Claim Moving Expenses on Your Taxes

If you’re preparing for a PCS move — with pets — the No. 1 thing to keep in mind is to keep all your receipts. Whether you keep the hard, printed copy or digitize all your receipts, it’s up to you.

You’ll just want to keep all your receipts organized and in one easy-to-access location. Receipts can be annoying, but trust us, your future self will be grateful that you took a little extra time to be careful with your receipts.

To maximize your tax deductions, it might be best to receive some help. You can hire a tax accountant, or you can use an online software such as TurboTax or H&R Block.

As long as you follow the rules, keep your receipts in order, and double check your work, you should be fine when it comes time to claim moving expenses on your taxes.

If you’re unsure about something, please consult with a tax expert.

File Your Moving Expenses With Confidence

Now that you’re equipped with the right knowledge, you’ll no longer have to wonder about are moving expenses tax deductible. Only members of the armed forces that must move because of a PCS order can file a tax deduction for moving expenses.

This means most taxpayers won’t qualify for a tax deduction. If you do qualify for a tax deduction, make sure you keep your receipts organized and all in one place.

If you have any questions at all about your taxes, consult with a tax expert. Speaking of experts, if you need help moving, consider using Moving Help. The Moving Help Marketplace can assist with all your labor-only needs such as loading or unloading. We have Service Providers in all 50 U.S. states and in all 10 Canadian provinces. Some of our Moving Helpers are veterans, so they know a thing or two when it comes to a PCS move.

Frequently Asked Questions About Moving Expenses

Q: Which states still allow moving expenses deduction?
A: If you live in Arkansas, California, Hawaii, Massachusetts, New Jersey, New York, and Pennsylvania, you may be eligible for a state tax break. You still won’t be eligible for a federal tax break unless you’re an active armed forces member, but you could still see a refund on the state level. If you have questions, seek a tax expert.

Q: Why are moving expenses no longer deductible?
A: Moving expenses are no longer deductible because of the Tax Cuts and Jobs Act, which was passed in 2017. This law made moving expenses no longer deductible for most taxpayers. The law is set to expire at the end of 2025.

Q: What kind of moving expenses are tax deductible?
A: Some moving expenses that are tax deductible include packing, storage, insurance, and gas. For a full list of moving expenses, check out the instructions for Form 3903. If you have questions, seek a tax expert.

Q: Are moving expenses tax deductible 2024?
A: Unless you’re an active member of the armed forces and you, your spouse, or your dependents must move because of a PCS order, your moving expenses won’t be tax deductible in 2024. If you have questions, seek a tax expert.

Disclaimer: We are not tax experts. Moving Help has provided this article for informational purposes only. For any questions or advice regarding taxes, please consult with a qualified accountant to help you.