Can I Deduct My Moving Expenses?

Before 2018, if you moved for a job, you could often deduct the cost. The One Big Beautiful Bill Act (OBBA), signed into law in July 2025, made the 2018 repeal of  moving expenses (through the Tax Cuts and Jobs Act) permanent.

However, there are two groups that are still exempt: active-duty Armed Forces members and certain intelligence community members.

Who can deduct moving expenses?

If you fall into one of these categories, you can still deduct qualifying moving costs on your federal return:

• Active-duty Armed Forces members who move under military orders for a permanent change of station.
• Certain intelligence community members, a new addition under OBBBA that didn’t exist under the original TCJA rules.

What kind of moving expenses can I deduct?

Even for the exempt groups, the deduction is narrower than people expect. It covers moving you and your stuff, not the house-hunting trips you took beforehand. Here’s what it covers:

• Packing and shipping your belongings: deductible.
• New furniture or decor for the new place: not part of the move: not deductible.
• Storage for up to 30 consecutive days after the move, if your new home isn’t ready yet: deductible.
• Lodging en route to your new home: deductible.
• Meals during the move: not deductible.
• Anything your employer already reimbursed you for: not deductible — you can only claim costs you paid out of pocket.

If you’re driving instead of flying, the IRS gives you a per-mile rate instead of tracking every gas station receipt. That rate has actually been moving around more than usual lately:

• 2026, January–June: 20.5 cents per mile
• 2026, July–December: 23.5 cents per mile (the IRS made a rare mid-year adjustment because of fuel price swings)

Or you can skip the standard rate entirely and deduct your actual gas and oil costs.

How do I deduct my moving expenses?

If you qualify to deduct moving expenses, this deduction is claimed on Form 3903, which is included when you file your federal tax return. The overall total from Form 3903 will flow onto Schedule 1, line 14, as a moving expense deduction. This amount then flows onto Form 1040 and is used to reduce your overall adjusted gross income.

What about state returns?

Some states, like California, still provide a deduction for moving expenses on your state tax return. Even if you don’t qualify for a federal deduction, you can still enter your moving expenses in TurboTax.  If your state allows you to take the deduction, TurboTax will pull the allowable amounts into your state return.

No matter what moves you made last year, TurboTax will make them count on your taxes. Whether you want to do your taxes yourself or have a TurboTax expert file for you, we’ll make sure you get every dollar you deserve and your biggest possible refund — guaranteed.