Can I Still Deduct My Moving Expenses?
If you're a civilian employee moving for a new job, the answer is almost certainly no. The Tax Cuts and Jobs Act of 2017 suspended the moving expense deduction for most Americans through 2025. Before 2018, you could deduct truck rentals, packing supplies, and lodging if your move met IRS distance tests. That's gone now.
Two groups still qualify:
- Active-duty military moving under permanent change of station orders
- Armed Forces reservists called to active duty for more than 90 days
Everyone else pays for their move with after-tax dollars. That includes state-to-state job relocations, first-time homebuyers, retirees downsizing, and remote workers moving to lower-cost cities.
What Changed in 2018
Before the 2017 tax law, you could deduct unreimbursed moving expenses if your new job was at least 50 miles farther from your old home than your previous job was. The deduction covered:
- Professional moving companies and truck rentals
- Packing materials and storage (up to 30 days)
- Lodging during the move (not meals)
- Mileage at the IRS standard rate
The deduction disappeared on January 1, 2018. Congress extended the suspension through December 31, 2025. Unless lawmakers reinstate it, the earliest civilians could claim moving expenses again is the 2026 tax year.
One quirk: if you filed a 2017 return and later amended it in 2018 or beyond, you could still claim the old moving deduction for that 2017 move. But any move after January 1, 2018, doesn't qualify unless you're military.
Who Can Still Deduct Moving Costs
Active-duty military members moving under permanent change of station (PCS) orders can deduct unreimbursed expenses. This includes:
- Moving household goods and personal effects
- Travel and lodging for yourself and your family
- Costs to move your car or motorcycle
- Storage fees if the move is temporary or delayed
You report these on IRS Form 3903 and attach it to your 1040. If the military reimbursed part of your move, you subtract that from your total expenses.
goCubify's military moving service handles PCS bookings with DOT-vetted carriers who understand military timelines and weight limits. The app flags which receipts matter for your tax return so you're not guessing in April.
Reservists called to active duty for more than 90 days can also deduct travel expenses to their new duty station. This is narrower than the full PCS deduction, but it covers mileage, lodging, and some meals during the move itself.
What Receipts to Save (If You Qualify)
If you're military and deducting your move, keep these records:
- Moving company invoices · the final bill of lading and payment receipt from your carrier
- Lodging receipts · hotel stays en route to your new duty station (not sightseeing stops)
- Mileage log · start and end odometer readings, dates, and route if you drove
- Storage receipts · monthly invoices if you stored goods between duty stations
- PCS orders · official documentation showing the move was government-directed
The IRS doesn't require you to submit receipts with your return, but you'll need them if audited. Snap photos and store them in a cloud folder labeled by tax year.
For mileage, use the IRS standard rate. In 2024, that's 67 cents per mile for business use (including military PCS moves). Multiply your total miles by the rate. If you drove 1,200 miles, you'd deduct $804. Don't add tolls or parking separately; the standard rate covers gas, wear, and incidentals.
Employer Reimbursements Are Taxable Now
Some companies still offer relocation packages, but the tax treatment flipped in 2018. If your employer pays your moving company directly or reimburses you $8,000 for a cross-country move, the IRS treats that $8,000 as taxable income.
It shows up on your W-2 in Box 1 (wages) and often in Box 12 with code P. You'll pay federal income tax, Social Security, and Medicare tax on the full amount. If you're in the 24 percent bracket, that $8,000 reimbursement costs you roughly $1,920 in additional tax.
Employers sometimes gross up the payment to cover the tax hit, but that's not required. Ask your HR team how they'll report the reimbursement so you're not surprised when your April tax bill lands.
State Tax Rules Vary
A handful of states decoupled from the federal tax code and still allow moving expense deductions:
- California · lets you deduct unreimbursed moving costs if you meet the old IRS distance and time tests
- Massachusetts · similar to the pre-2018 federal rules
- New York · moving expense deduction remains for state return filers
Check your state's department of revenue website or consult a CPA. If you moved from Texas (no state income tax) to California, you might deduct the move on your California return even though the federal deduction is gone.
Other states follow the federal code exactly. If the IRS doesn't allow it, neither does your state.
How to Reduce Moving Costs When You Can't Deduct Them
Since most people pay for moves with after-tax money now, every dollar you save is a dollar you keep. Here's where to focus:
Compare real quotes. Get binding estimates from at least three DOT-registered carriers. A $4,500 quote versus a $6,200 quote is $1,700 you're not spending. goCubify's moving cost calculator gives you a binding quote after a quick room scan, so you're not guessing or waiting for in-home estimates.
Decide what not to move. The cheapest item to move is the one you leave behind. Use the Smart Leave feature to see whether it's cheaper to ship your old couch or buy a new one at your destination. If replacing costs less than shipping, donate the couch and pocket the difference.
Move in the off-season. June through August is peak season. Rates drop 20 to 30 percent in October, November, February, and March. If your job start date is flexible, a November move instead of July can save $1,500 on a long-distance haul.
Pack yourself. Professional packing costs $500 to $1,200 for a two-bedroom apartment. If you can spare a weekend, box your own kitchen and closets. Use our one-day kitchen packing guide to knock out the hardest room without stress.
Verify your mover. Unlicensed movers quote low, then hold your stuff hostage for extra fees. Always check the carrier's USDOT number on the FMCSA website. Here's how to verify a mover in 90 seconds. goCubify only shows DOT-vetted carriers, so you're not sifting through Craigslist scams.
What to Expect in 2026 and Beyond
The moving expense deduction suspension expires December 31, 2025. Congress could extend it, make it permanent, or let the old rules come back. If the pre-2018 deduction returns, you'd need to meet the distance test (50 miles farther) and the time test (39 weeks of full-time work in the first year).
Until then, plan your move as if the deduction doesn't exist. If it comes back, you'll have a nice surprise. If it doesn't, you're not counting on tax savings that won't materialize.
For military families, the deduction remains. Keep your receipts, log your mileage, and file Form 3903 with your return. If you're moving under PCS orders and want a quote that reflects your actual weight and timeline, try goCubify's military moving workflow. Scan your quarters, get a binding quote, and book a carrier that knows how to work with TMO deadlines.
One Last Thing
Even though you can't deduct the move, keep your records for three years. If your employer reimbursed you and reported it on your W-2, the IRS might ask for documentation. If you're military, you'll need receipts to support your Form 3903 deduction.
Set up a folder now. Toss in your moving contract, receipts, and mileage log. When April rolls around, you'll have everything in one place instead of digging through email and shoeboxes.