Deducting Moving Expenses

Does Moving Qualify as a Tax Deduction?

Laws for deducting moving expenses have changed recently and most taxpayers can no longer deduct moving expenses. Through 2025 this tax deduction will be suspended. The only exception for this tax deduction is for active duty military members.

New Tax Law

For tax years through 2025, the qualified moving expense reimbursements and the moving expense deductions have been suspended and are no longer available for most taxpayers. However there is one exception and that is for active duty military members, their spouses and their dependents. For all military members there are certain requirements that will be met to ensure everything is deductible.

Are you qualified?

Servicemembers of the Armed Forces can deduct expenses without a certain time or distance test if both of the following criteria are met.

• You are on active duty.
• You are moving because of a permanent change of station.
  • Permanent change in station can include:
    • Moving from home to a first post of active duty.
    • A move from one permanent post to another.
    • Relocation from post of duty to home.
  • Other circumstances:
    • Spouse or dependents relocation if servicemember deserts, dies or is imprisoned will include a move.
    • The members place of enlistment or induction
    • Your, or the member’s home of record or
    • Nearer point in the United States

For all active servicemembers that have met the criteria above you would be qualified for a tax deduction. Certain moving expense can also be deducted which can include the cost of transportation and storage, travel, lodging, vehicle expenses, foreign relocation.

Nondeductible Expenses

During the moving process even if all the criteria is met, there will still be certain expenses that are not covered during the relocation process. These nondeductible can include: cost meals, temporary living expenses while traveling, security deposits, real estate taxes, mortgage penalties, any part of the new home purchase, cost of breaking a lease.

These expenses are not considered moving expenses which is why they don’t qualify for a deduction. Doing your research and understanding the moving process and all deductions is beneficial. Going to IRS.gov for information will provide additional support but reach out to your local tax expert for help.

Local Expert

When we spoke to Jeff Campbell of Jeffrey Campbell CPA, he mentions that with the IRS there are always exceptions and sometimes the rules may be changed or updated. For more in-depth information check out this article which goes into depth on explanation of what qualifies and what isn’t qualified for deducting moving expenses.