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The Asset ObserverThe Asset Observer
Home»Personal Finance
Personal Finance

Are Moving Expenses Tax-Deductible? – NerdWallet

News RoomBy News RoomOctober 4, 2024
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Moving expenses aren’t tax-deductible on your federal tax return unless you’re in the military and are moving due to a permanent change of station[0]. However, some people (even non-military) might be able to deduct moving expenses on their state income taxes, depending on where they live.

Packing and unpacking services.

Storing and insuring your stuff for 30 consecutive days between when you move out of your old place and move into your new place.

Travel expenses (hotel, but not meals) from your old home to your new home (including car expenses and airfare). 

Your out-of-pocket expenses for gas and oil, if you keep an accurate record of each expense. The standard IRS mileage reimbursement rate to drive from the old place to the new place.

These things typically don’t count as moving expenses:

Expenses for employees, such as a maid, nanny or nurse.

The price of your new home.

Fees for new license plates or car registrations.

Fees for a new driver’s license.

Closing costs, mortgage fees and points associated with buying or selling a house.

Fees to sign or break a lease.

Home improvements you make to help sell your home.

Losses associated with disposing of club memberships.

Repairs, maintenance, insurance or depreciation for your car.

Changing carpet or window treatments.

Return trips to your former home.

Storage charges except those incurred in transit and for foreign moves[0].

Only people in the military who are moving due to permanent change of station can deduct moving expenses on their federal tax returns. However, a few states allow everyone to deduct moving expenses on their state tax returns. Some states only allow active duty military members to take the deduction on their state tax returns. A few don’t let anyone take a state-level deduction for moving expenses.

If you qualify for the moving expense deduction, you can file IRS Form 3903, which you then use to reduce your taxable income on IRS Form 1040 at tax time. There are special rules for storage fees if you were out of the country during the tax year[0].

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