Summer is a popular time to move – and with that comes added expenses. Between gasoline, packing materials, moving assistance, and insurance, the costs can really add up.
And oftentimes, you also have to come up with closing costs or security deposits at the same time as the move. All of these expenses can be overwhelming at once.
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, however, for certain members of the military and their families.
Table of Contents
Who Can Deduct Moving Expenses?What Kind of Moving Expenses Can I Deduct?How Do I Deduct My Moving Expenses?What about state returns?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 are moving due to military orders from a permanent change of station.
The current tax law eliminates the deduction for moving expenses from 2018 to 2025 for any other taxpayers. After 2025, the law is scheduled to revert to the previous tax law. When this happens, all taxpayers will be able to deduct certain costs associated with moving and traveling to your new home.
What Kind of Moving Expenses Can I Deduct?
You can only deduct the cost to move you and your belongings if you are a member of the armed forces on active duty due to a military order. This means that 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.
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 are also able to deduct the cost of storage for up to 30 consecutive days after the move if your new home is not yet ready.
Lastly, you can even deduct any lodging you paid to get from your old home to your new home, but you can’t deduct the cost of meals. If you were reimbursed for any of these expenses, be aware you cannot deduct them. You can only deduct the costs you have not been reimbursed for.
For qualified active-duty members of the Armed Forces, if you fly to your new place of residence, you can deduct your plane fare. If you drive, you can deduct your actual cost (e.g., gasoline and oil) or 22 cents per mile in 2023 and 21 cents per mile in 2024.
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 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.