Quick overview

The federal tax deduction for moving expenses is now limited. Under the Tax Cuts and Jobs Act (TCJA), the above‑the‑line deduction for most taxpayers was suspended for tax years 2018 through 2025; currently, only active‑duty members of the U.S. Armed Forces who move because of a military order and permanent change of station (PCS) can deduct unreimbursed moving expenses (see IRS Publication 521 and Form 3903). Given this narrow federal window, “tax‑effective strategies” focus on maximizing benefits for eligible taxpayers, documenting costs to support claims, and exploring state or employer options where federal rules no longer help.

(Author note: In my 15+ years advising clients, I’ve repeatedly seen careful documentation and early coordination with employers or a tax pro turn modest moving costs into real, provable tax savings.)

Sources: IRS Publication 521, “Moving Expenses” and IRS Form 3903 (Moving Expenses) — https://www.irs.gov/individuals/moving-expenses and https://www.irs.gov/forms-pubs/about-form-3903

Why the rules matter now

Before the TCJA, many employees moving for a new job could deduct qualifying moving expenses if they met distance and time tests. TCJA suspended those deductions for most taxpayers to reduce taxable income complexity. The result: the federal moving expense deduction today applies almost exclusively to active‑duty military moving under orders. That change shifted the planning emphasis away from claiming direct federal deductions to alternative tactics such as:

  • Working with employers to structure tax‑favored reimbursements where possible;
  • Checking state tax law: some states never conformed to the federal suspension or have their own rules; and
  • Maintaining complete records so that, if you are eligible (e.g., military), you can substantiate every dollar.

For help understanding how this affects your move and state taxes, see our guide to State Residency and Income Tax: Moving Without Surprises.

Who still qualifies for a federal moving expense deduction?

  • Active‑duty members of the U.S. Armed Forces who move because of a military order and permanent change of station (PCS). Eligible service members should use Form 3903 to report moving expenses (IRS Form 3903: https://www.irs.gov/forms-pubs/about-form-3903).
  • Dependents of eligible military members may be able to deduct moving costs when unreimbursed and directly related to the move.

If you are not military, the federal deduction generally does not apply for tax years 2018–2025 (check updates beyond 2025). For a focused look at who still qualifies, see our internal explainer: Deducting Moving Expenses: Who Still Qualifies.

Commonly eligible moving costs (for qualifying taxpayers)

When a taxpayer qualifies (chiefly military PCS moves), the IRS treats the following as commonly deductible when unreimbursed:

  • Transportation of household goods and personal effects (truck rental, movers, shipment);
  • Travel and lodging during the move (including mileage for a personally owned vehicle or actual costs for fuel — keep logs);
  • Storage costs for household goods and personal effects for up to 30 consecutive days after they leave the old home; and
  • Certain packing and unpacking charges.

Note: The 30‑day storage limit, rules for temporary lodging, and deductible travel items are summarized in IRS Publication 521. Always cross‑check the current publication for small rule changes and examples.

Tax‑effective strategies you can use

  1. Start with eligibility and timelines
  • Confirm whether you meet the qualifying test (military PCS). If you do, collect orders and official documentation immediately. Eligibility hinges on being on active duty and moving under military orders.
  1. Create a moving expense checklist and log
  • Track each expense (date, vendor, purpose, amount) and photograph receipts. For mileage, keep a contemporaneous mileage log showing dates and miles related to the move; note start and end addresses for each trip.
  1. Use the correct IRS forms and lines
  • Eligible military filers should complete Form 3903. If you expect employer reimbursement, record reimbursements separately and reconcile them on Form 3903 as required.
  1. Coordinate with your employer
  • Ask whether your employer offers moving reimbursements or an accountable plan. Some employers may provide direct reimbursement or pay vendors directly. For military members, compare employer reimbursements with the deduction to avoid double counting. For non‑military employees, many reimbursements now appear as taxable wages because the federal deduction is suspended — discuss tax treatment with HR and your CPA.
  1. Check state tax treatment
  • Several states do not fully conform to federal changes. That means you might still claim a moving expense deduction on your state return even if you cannot on your federal return. Confirm state rules before filing; use our state‑tax guides like State Residency and Income Tax: Moving Without Surprises.
  1. Substantiate employer payments and reimbursements
  • If your employer reimbursed moving costs, obtain a clear statement showing amounts paid and what they covered. Keep proof of unreimbursed expenses if you are deducting them.
  1. Leverage pre‑move tax planning
  • If you expect to be eligible (e.g., military or moving abroad for an employer posting), plan reimbursements and expense timing in consultation with a tax advisor so you don’t unintentionally create taxable income or lose qualifying status.
  1. Consider tax‑free relocation benefit programs (for employers)
  • Some large employers offer taxable‑advantage programs (e.g., gross‑up arrangements or direct vendor payments) that minimize employee tax headaches. Ask HR about available options.

Documentation checklist (practical, printable)

  • Official orders or employer transfer letter (military PCS orders for service members).
  • All vendor receipts (movers, truck rental, storage, packing materials).
  • Lodging receipts tied to travel during the move.
  • Mileage log with odometer readings, start and end addresses, and trip purpose.
  • Records of employer reimbursements or direct vendor payments.
  • Photos of high‑value items (optional but helpful for claims or disputes).
  • A one‑page summary tying each receipt to the moving event and locality.

In my practice, clients who keep this one‑page summary and a grouped folder for receipts save hours during tax prep and reduce audit stress.

Real‑world examples (anonymized)

  • Example 1: Active‑duty sailor. Documentation: PCS orders, truck rental receipts, 28 days of storage receipts. Result: Deduction claimed on Form 3903, reducing taxable income for the year.

  • Example 2: Civilian employee (non‑military). Employer reimbursed moving costs through payroll. Result: Because federal moving deductions were suspended, reimbursements were treated as taxable wages. The employee negotiated a gross‑up with HR and reduced net out‑of‑pocket costs.

These examples illustrate two important lessons: verify eligibility before assuming a deduction, and coordinate with your employer early.

Common mistakes to avoid

  • Assuming all job‑related moves qualify. (Most non‑military moves do not qualify at the federal level for tax years 2018–2025.)
  • Throwing away small receipts (fuel, tolls, parking). These add up and support claimed mileage or travel costs.
  • Failing to document employer reimbursements and how they were paid. Without a clear paper trail, you may misreport income or deductions.
  • Ignoring state tax rules. You can lose state benefits by not filing the appropriate state forms.

Frequently asked follow‑ups

Q: Can I deduct moving expenses for a job search?
A: Not at the federal level for most taxpayers; active‑duty military is the primary exception. Check state rules and consult a tax advisor.

Q: How long should I keep moving records?
A: Keep records for at least three years from the date you file the tax return claiming the deduction, or longer if you have unfiled returns or carryovers. Military members may want to retain PCS orders and receipts for the same period.

Q: Are employer reimbursements taxable?
A: The tax treatment depends on current federal law, the employer’s reimbursement plan, and whether you qualify for an exclusion. Ask HR and a CPA for guidance; retain employer statements showing amounts paid.

Where to find official guidance and further reading

Also see related FinHelp guides:

Professional disclaimer

This article is educational and reflects IRS guidance current through 2025. It does not replace personalized advice. Tax rules change; consult a qualified tax professional or the IRS before relying on this information for your specific tax circumstances.

If you’d like, I can prepare a one‑page printable checklist you can use during your move or a sample completed Form 3903 based on a hypothetical PCS move to illustrate the entries.