Can I Deduct My Summer-Time Moving Expenses?

I know firsthand that moving stinks. During the mid-1990s, I moved five times in four years.

It slowed down for a while, but we still managed to move our family three times in two years between 2010 and 2012.

Whether you move 600 miles or 600 feet, the packing, lifting, carrying, unpacking, truck renting, setting up, canceling, and moving utilities adds up to be as much fun as a week of dental extractions.

Not only that, moving isn’t cheap either. Between gasoline, packing materials, moving assistance, and insurance, the costs can really add up. Often, you have to come up with closing costs or security deposits at the same time as the move.

All of this might get you thinking, “Are any of my summer-time moving expenses tax deductible?” or “Is there anything I can deduct on my taxes for moving?” 

Under previous tax laws, you could deduct costs associated with moving if you qualified. As a result of the Tax Cuts and Jobs Act (TCJA), moving expenses for most taxpayers are no longer eligible for a tax deduction on your federal tax return. There is an exception for certain members of the military and their families. 

Who Can Deduct Moving Expenses?

Beginning in 2018, to deduct your moving expenses on your federal tax return, you must be a member of the Armed Forces on active duty, and you are moving due to military orders because of a permanent change of station. The current tax law under the TCJA of 2017 eliminated the deduction for moving expenses from 2018 to 2025. After, the law would revert to its previous tax law, where you could deduct certain costs associated with moving and traveling to your new home.

However, some states, like California, still provide a deduction on your state tax return. 

What Kind of Moving Expenses Can I Deduct?

You can only deduct the cost to move you and the cost to move your stuff if you are a member of the armed forces on active duty due to a military order. In practice, that means you can deduct the cost to pack and ship your possessions but not the cost of new decorations that go much better in the new place.

You can deduct the cost of moving to your home but not any of the earlier trips you took while you were looking for a place to live. You can even include any lodging you paid to get from your old home to your new home, but you can’t include the cost of meals. 

For qualified active-duty members of the Armed Forces, if you fly, you can deduct your plane fare; if you drive, you can deduct your actual cost (e.g., gasoline and oil) or 22 cents a mile in 2023.

How Do I Deduct My Moving Expenses?

If you qualify to claim moving expenses, this deduction is claimed on a Form 3903 to be included as part of your federal tax return. So, even if you have no other deductions, you will still receive a tax benefit (i.e., save money) as a result of your moving expenses.

Don’t worry about knowing these tax rules and deductions. Meet with a TurboTax Full Service Expert who can prepare, sign, and file your taxes, so you can be 100% confident your taxes are done right. Start TurboTax Live Full Service today, in English or Spanish, and get your taxes done and off your mind.  

While the moving expense deduction won’t leave you any less physically sore from all that heavy lifting, the tax savings you have to look forward to might lessen some of your financial pain.