Can you deduct moving expenses?
Fact Checked by: Here’s the quick answer: Federal tax deductions for moving expenses have been suspended through 2025 for everyone except active duty military personnel.
Wondering what moving expenses you can deduct, claim, or get reimbursed for? You’re not alone. At moveBuddha, we help thousands of people relocate and know how quickly expenses add up, especially when you don’t know what qualifies.
Drawing from real moves in our Better Moves Project and IRS guidelines, here’s how to make smarter money moves during your relocation.
What counts as a moving expense?
Moving expenses are costs directly related to relocating your household due to a new job or moving on a military order. But not every moving-related purchase qualifies for a deduction or reimbursement.
Examples of common moving expenses:
- Transportation: Moving companies, rental trucks, car shipping
- Packing supplies: Boxes, tape, and packing materials
- Temporary storage: Storage for up to 30 days
- Travel: Travel to your new home (excluding meals)
Just because you paid for it doesn’t mean you can deduct it or get reimbursed. Let’s break it down.
Are moving expenses tax-deductible in 2025?
For most people, the answer is no. The Tax Cuts and Jobs Act (TCJA) suspended federal moving expense deductions for most taxpayers through at least 2025.
Here’s who can still deduct moving expenses:
- Active-duty military: Eligible if moving under a permanent change of station (PCS) order
- Some states: May still allow deductions on state tax returns. Check your local tax rules.
Qualified vs. non-qualified moving expenses
The IRS (and most employers) classify moving expenses into two categories — those you can deduct or get reimbursed for, and those you can’t.
| Qualified expenses (usually deductible or reimbursable) | Non-qualified expenses (not deductible) |
|---|---|
|
|
How to claim moving expenses on your tax return
If you’re eligible, here’s how to file:
- Save all receipts: Movers, storage, travel, packing supplies
- Get IRS Form 3903: Download it here
- Fill out Form 3903: Report only qualified expenses minus any reimbursement
- Attach it to your Form 1040
- Keep records for at least three years
How employer reimbursement works
If your employer offers a relocation package, that’s great! Just don’t forget the tax bill. Unless you’re in the military, reimbursed moving expenses are considered taxable income.
Your employer may cover costs like hiring professional movers or truck rentals, crating and packing services, storage, and travel expenses.
Are house-hunting and closing costs deductible?
No. These costs are not deductible and typically aren’t reimbursed. That includes:
- House-hunting travel
- Real estate agent fees
- Security deposits and utility setup
If your employer offers a lump sum for these, it’s still considered taxable income.
How to reduce your moving expenses
While most people can’t deduct their moving expenses, there are plenty of ways to lower them. Here are real strategies shared in our Better Moves participant stories:
- Downsize before you pack.
Isabel intentionally minimized her belongings for a long-distance move from San Francisco to NYC: “Downsizing was a priority. I got rid of almost all of my furniture.” - Get multiple quotes — and don’t always go with the cheapest.
Pavan chose the most expensive quote because it was the most accurate and saved money in the end: “Allied gave me the highest quote, but it was the most accurate. I paid $300 less than expected.” - Ask about hidden fees like stair carries or parking permits.
Michelle was surprised by a long-carry charge at destination: “I didn’t realize I’d have to pay a long-carry fee. That’s something I should have asked about.” - Move off-season if you can.
Adam moved over the holidays and incurred added storage fees: “Because I moved over Christmas and New Year’s, I ended up paying extra for short-term storage.” - Compare prices with tools and do your homework.
Marilyn saved money by comparing options and doing research: “I got quotes from Jordan River, Move Happy, and U-Pack before settling on Smartbox. I felt confident in my decision.”
Plan your move with confidence
Federal tax breaks for moving are limited, but knowing what qualifies, how to document expenses, and how to find savings can go a long way. Whether your move is job-related or military-ordered, planning ahead will help you avoid surprises.
Want accurate quotes and real-life insights? Use our moving cost calculator to get personalized estimates and make the best decision for your budget.
Frequently asked questions
Can I deduct moving expenses?
What IRS form do I need to file for moving expense deductions?
What if my employer reimburses me?
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