Moving expenses in 2025: What’s the haps?
If you’re wondering if you can deduct moving expenses in 2025, here’s the short answer: most people can’t. The moving expense deduction has been suspended since 2018 as part of the Tax Cuts and Jobs Act (TCJA) and still is through at least 2026.
But one group has some good news—active-duty members of the Armed Forces. If you are a member of the Armed Forces and move as a result of a permanent change of station (PCS), you can still deduct part of the expenses.
Why was the deduction suspended
The TCJA ended the moving expense deduction for most people. Congress wanted to simplify the tax code, and this was one of the things they did. So from 2018 until the end of 2025, civilian taxpayers are out of luck.
But military families have unique needs, moving from base to base, sometimes across the country or even overseas. That’s why the IRS provided an exception for them.
Who qualifies for the military exception?
To qualify for 2025 moving expenses, you must pass all three tests:
- Be on active duty – That is, it is only for U.S. Armed Forces members.
- Move under a military order – The IRS wants to see paperwork that your move was involuntary.
- Permanent change of station (PCS) – The move should be official and related to your duty station.
If you meet those qualifications, congratulations—you may still be able to deduct moving expenses when most taxpayers can’t.
What can you deduct?
Not everything counts as a moving expense, so it’s best to know what does. Here are the highlights:
- Household items and personal effects – Packing, crating, towing, storage (up to 30 days), and insurance expenses.
- Travel expenses – Fuel, airfare, tolls, lodging, and meals while in transit between your old home and new home.
What is not eligible? You cannot claim money paid for buying new furniture or taking a brief vacation en route. Only essential and reasonable moving expenses qualify.
How much is it worth?
If you use your own vehicle, the IRS allows you a standard mileage allowance. For 2025, that’s 21 cents per mile. That hasn’t changed from 2024. That doesn’t sound like a lot, but when you throw in tolls, gas, storage, and packaging, the grand total can be a real lifeline.
Since it’s an “above-the-line” deduction, you don’t have to itemise your taxes to take it. What that signifies is that it reduces your adjusted gross income (AGI) immediately, which reduces your taxable income.
How to claim the deduction
If you qualify, claiming the deduction is fairly simple. Here’s how it works:
- Keep receipts – Hold on to every invoice, receipt, and mileage log pertaining to your move.
- Complete IRS Form 3903 – That’s the moving expense form.
- File it with your tax return – Attach it to your normal return, and you’re done.
Simple, but very important: if the government paid you back for your outlays, you can’t deduct them.
International moves: A word of special note
For soldiers deployed outside the continental U.S., the IRS also excludes some extras, including long-term storing of household goods or sending your own vehicle. These costs can be deducted from income and are tax-exempt.
Looking ahead to 2026
For civilians, the moving expense deduction is scheduled to come back in 2026—unless Congress decides to extend the suspension. So if you’re not military and planning a big move, waiting until then might pay off.
Bottom line
For 2025, moving expenses are only deductible for active-duty military members relocating under official PCS orders. Civilians are out until 2026.
If you qualify, maintain accurate records, use Form 3903, and remember that the deduction lowers your income directly. It’s one of the last tax breaks available to military families in a year when most taxpayers cannot claim moving expenses at all.
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