Are Moving Expenses Tax Deductible?

Moving expenses are no longer tax-deductible for most people, which means you can't claim them on your federal return. This is the standard for the 2018-2025 tax years. If you moved before 2018 and didn't claim a tax deduction for moving expenses, you may be able to deduct them—if your move meets certain conditions.

Fortunately, the IRS recognizes a pretty broad range of costs as moving expenses. Your packing supplies count as moving expenses, as does the cost of a moving company (or a moving container or a rental truck). Any transportation costs for your family—such as plane fare, train tickets, or gas—also count. You can even include the cost of a storage unit for thirty days.

Don’t, however, try to deduct the cost of the pizza you bought for the friends who helped you pack or the cost of all that fast food you ate as you traveled. Food costs don’t count as moving expenses.

Keep in mind also that your moving expenses are limited to the expenses of your actual move. You can’t deduct expenses for trips to look for a new house—you’ll have to find granite countertops and vaulted ceilings on your own dime. Likewise, you can’t count any side trips on your move. The IRS expects you to take the most direct route possible, so think twice before you detour to see the World’s Largest Ball of Twine.

If you’re moving for a job, your new employer might offer to reimburse your moving expenses as a nice benefit. To see whether or not this is a taxable benefit, look at your W-2 form to see if your employer counted moving reimbursement as part of your income.

Check out box twelve on your W-2. Is there a number there? Does it have the code P? If so, you can take the deduction. You’ll see a code P if your employer has an accountable reimbursement plan—that is, you have to log and report your moving expenses to them and return any excess reimbursement.

If your employer has a nonaccountable reimbursement plan—one in which you get moving money without reporting your expenses to your job—then your reimbursement should be included with your wages in box one of your W-2. In that case, you can still take the deduction.

If you don’t see a code P in box twelve and your wages in box one don’t include reimbursement, then you can’t deduct your employer-reimbursed moving costs.

If you’re ready to claim your deduction, fill out and include Form 3903 in your tax return.

If you want to verify that your moving expenses are tax deductible, check out the IRS’s Interactive Tax Assistant tool. Simply answer a few questions, and the tool will tell you if your moving expenses qualify.

Moving and taxes can both be hard on your wallet, especially if you hired professional movers— but hopefully, deducting your moving expenses helps take the edge off.

Looking for more budget-friendly moving resources? Here some ways you can save on your move:

• Best Cheap Moving Companies
• Cheapest Moving Container Companies
• Cheapest Rental Truck Companies
• Cheapest Ways to Ship Your Car

• How Do I Pay for My Move?
• Are There Moving Deals and Discounts?
• What is the Cheapest Way to Move?
• How Can I Save on My Utility Bills?