Are Moving Expenses Tax Deductible In 2026?

Last updated 05/13/2026 by

Ante Mazalin

Edited by

Andrew Latham

Fact checked by

Andy Lee

Summary:

Moving expenses are not tax deductible for most taxpayers under current law, but active duty members of the Armed Forces who move due to a permanent change of station can deduct unreimbursed qualifying moving costs, and beginning in 2026, certain intelligence community members may also qualify.

The deduction for civilians was suspended by the Tax Cuts and Jobs Act and permanently eliminated by the One Big Beautiful Bill Act.

Active duty military: Unreimbursed moving expenses for a permanent change of station (PCS) are deductible above the line on Schedule 1 (Form 1040), Line 14, calculated on Form 3903. Qualifying costs include transporting household goods and personal effects, and travel (excluding meals) to the new home.
Intelligence community members (beginning 2026): The One Big Beautiful Bill Act extended moving expense deductibility to qualifying intelligence community employees who move under orders, effective for tax years beginning in 2026.
All other filers: Not eligible. The Tax Cuts and Jobs Act suspended the moving expense deduction for civilian taxpayers from 2018 through 2025. The One Big Beautiful Bill Act made that elimination permanent beginning in 2026.
Reimbursed expenses: Not deductible. Only unreimbursed out-of-pocket costs qualify. Military members who receive government reimbursement or a Dislocation Allowance (DLA) cannot deduct the reimbursed portion of their moving costs.

A job relocation, a life change, a new city, people move for dozens of reasons, and the cost of moving is real. For most filers, though, the federal tax deduction that once existed has been permanently removed, and only a narrow category of taxpayers can still claim it.

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Are moving expenses tax deductible? Only for active duty military and, starting in 2026, qualifying intelligence community members

No, not for most taxpayers. The Tax Cuts and Jobs Act suspended the federal moving expense deduction for non-military taxpayers beginning in 2018. The One Big Beautiful Bill Act permanently eliminated it for civilians starting in 2026.

For active duty members of the Armed Forces who move due to a military order for a permanent change of station, the deduction remains available. According to IRS Form 3903 Instructions and IRS Topic 455, qualifying military members can deduct unreimbursed moving costs above the line, meaning the deduction reduces adjusted gross income and is available regardless of whether the filer itemizes.

Beginning with tax years in 2026, the One Big Beautiful Bill Act also extended this deduction to qualifying employees of the intelligence community who move under orders, treating them similarly to active duty military members for purposes of the moving expense deduction.

Who can deduct moving expenses?

Eligibility depends on military or intelligence community status and whether the move was ordered by a government authority.

Active duty Armed Forces members: Eligible to deduct unreimbursed qualifying moving expenses when a move is required by a permanent change of station (PCS) order. Per IRS Topic 455, qualifying moves include: a move from home to a first post of active duty, a move from one permanent post to another, and a move from a last post to home (or a nearer U.S. location) upon honorable discharge or retirement. The deduction is above the line, reported on Schedule 1 (Form 1040), Line 14, using Form 3903.
Intelligence community employees (beginning 2026): Eligible to deduct qualifying moving expenses for moves required by orders, under the expanded provision enacted by the One Big Beautiful Bill Act. Per IRS guidance, qualifying intelligence community employees are treated similarly to Armed Forces members for purposes of claiming the deduction on Form 3903.
Civilian employees relocating for a job: Not eligible. The Tax Cuts and Jobs Act eliminated the deduction for civilian employees for tax years 2018 through 2025, and the One Big Beautiful Bill Act made that elimination permanent. Neither the job distance test nor the time test that previously applied to civilian movers can generate a deduction under current law.
Self-employed individuals who moved for work: Not eligible. The civilian moving expense deduction was eliminated without exception for non-military taxpayers. There is no Schedule C workaround for moving costs under current law.
Military members whose expenses were reimbursed: Not eligible to deduct the reimbursed portion. Per IRS Form 3903 Instructions, only the unreimbursed out-of-pocket cost qualifies. If the military paid for the move directly or reimbursed the member through a Dislocation Allowance, a Partial Dislocation Allowance, or another government payment, those amounts cannot be deducted.

A military member who paid $4,000 in qualifying moving costs and received a $2,500 government reimbursement can deduct only the $1,500 difference.

How much of moving expenses can you deduct?

Active duty military members can deduct the full unreimbursed cost of qualifying moving expenses, with no dollar cap. The deduction is not subject to an income phase-out.

Filer type	Deductible amount	Where to report
Active duty Armed Forces (PCS move)	Full unreimbursed qualifying moving costs, transportation, storage, and travel (excluding meals)	Form 3903; Schedule 1 (Form 1040), Line 14
Intelligence community employees (beginning 2026)	Full unreimbursed qualifying moving costs under orders, same rules as military	Form 3903; Schedule 1 (Form 1040), Line 14
Civilian employees and self-employed filers	$0, permanently nondeductible under current law	N/A

Qualifying moving costs include the cost of packing, crating, hauling, and transporting household goods and personal effects; in-transit storage for up to 30 consecutive days while goods are in transit; and travel costs (lodging but not meals) for the member and household from the old home to the new one. Using a personal vehicle for the move is deductible at the IRS standard mileage rate for moving, which the IRS sets annually.

How to deduct military moving expenses

The deduction applies only to unreimbursed qualifying costs and must be calculated on Form 3903. Here is the process for eligible military filers.

Confirm your move qualifies as a permanent change of station. Per IRS Topic 455, the deduction applies to moves ordered by military authority to a new permanent duty station, including moves to a first post of duty, between stations, or from a last post to home. Temporary duty assignments (TDY) or voluntary relocations without a PCS order do not qualify.
Identify all qualifying moving expenses paid out of pocket. Per IRS Form 3903 Instructions, qualifying costs include transporting and storing household goods and personal effects, and travel expenses (lodging but not meals) for the move itself. Exclude any costs reimbursed by the government, paid under a Dislocation Allowance, or covered by a government move contractor.
Calculate the net deductible amount on Form 3903. Line 1 of Form 3903 covers transportation and storage of household goods. Line 2 covers travel expenses. Line 4 subtracts any government reimbursements received. Line 5 shows the net deductible amount, the amount that flows to your return only if your unreimbursed costs exceed any reimbursement received.
Transfer the Form 3903 result to Schedule 1 (Form 1040), Line 14. The net deductible moving expense from Form 3903 is an above-the-line adjustment to income, reported on Schedule 1 (Form 1040), Part II, Line 14. This deduction reduces adjusted gross income regardless of whether you itemize or take the standard deduction.
Keep all moving receipts, PCS orders, and documentation of government reimbursements for at least three years. Per IRC Section 6501, the IRS can audit returns within three years of the filing date. Retain your PCS orders confirming the qualifying move, all contractor invoices and receipts for moving costs, lodging receipts, and any government reimbursement documentation showing amounts that must be subtracted from your deduction.

Common mistakes when deducting moving expenses

The most common error is a civilian taxpayer deducting moving expenses because they changed jobs and moved more than 50 miles. The distance test and time test that once applied to civilian movers were eliminated by the Tax Cuts and Jobs Act and made permanent by the One Big Beautiful Bill Act. No job-related move by a non-military civilian produces a federal moving expense deduction under current law, regardless of distance or necessity.

A related mistake affects military members who deduct the full cost of their move without accounting for government reimbursements. Per IRS Form 3903 Instructions, only the portion of moving costs that exceeds any government reimbursement is deductible. Deducting gross moving costs without subtracting a Dislocation Allowance or other government payment overstates the deduction.

Including meals as a qualifying moving expense: Per IRS Form 3903 Instructions, meals during the move are never deductible, even for military members. Only lodging costs while traveling to the new station qualify as deductible travel expenses. A military member who drives three days to a new duty station can deduct hotel costs but not food expenses for those same days.
Deducting pre-move house-hunting trips: House-hunting travel, temporary living expenses at the new location, and security deposits are not qualifying moving expenses under IRS Form 3903 Instructions. These costs do not appear on Form 3903 and cannot be claimed elsewhere on a personal return as a moving deduction.
Assuming employer-paid moving assistance is tax-free: For civilian employees, employer reimbursements for moving expenses are no longer excludable from income. Per the Tax Cuts and Jobs Act and the One Big Beautiful Bill Act, qualified moving expense reimbursements paid to civilian employees are treated as ordinary taxable wages. Military members’ government-paid moving allowances remain excludable from income under IRC Section 134.

Pro tip: Military members who paid out-of-pocket for a PCS move using a Personally Procured Move (PPM, sometimes called DITY) should compare their actual documented costs against the government’s incentive payment before filing Form 3903. If the government’s PPM incentive payment exceeds the actual moving costs, there may be no deductible amount. If actual costs exceed the PPM payment, the difference is deductible. Keeping itemized receipts for fuel, vehicle rental, packing materials, and lodging, rather than relying on an estimated total, produces the most accurate Form 3903 calculation and the largest defensible deduction if actual costs exceed the incentive payment.

For civilian taxpayers, the moving expense deduction has been permanently removed from the federal tax code with no income replacement. The cost of a job relocation does not produce a federal deduction or credit under current law, regardless of how far the move is or how necessary it was for employment.

Key takeaways

Moving expenses are not deductible for civilian taxpayers. The Tax Cuts and Jobs Act suspended the deduction for 2018 through 2025, and the One Big Beautiful Bill Act permanently eliminated it for non-military, non-intelligence-community filers.
Active duty Armed Forces members who move due to a permanent change of station order can deduct unreimbursed qualifying moving costs on Form 3903, reported above the line on Schedule 1 (Form 1040), Line 14, per IRS Topic 455.
Beginning in 2026, the One Big Beautiful Bill Act also extended the moving expense deduction to qualifying intelligence community employees who move under orders, treating them similarly to military members under IRS Form 3903 rules.
Qualifying costs include transporting and storing household goods and travel expenses (lodging only, not meals) to the new duty station. Government reimbursements, including Dislocation Allowance payments, must be subtracted from gross moving costs before claiming any deduction.

Frequently asked questions about deducting moving expenses

Can you deduct moving expenses without itemizing?

Yes, if you are an eligible military member or qualifying intelligence community employee. The moving expense deduction is an above-the-line adjustment to income on Schedule 1 (Form 1040), Line 14, and does not require itemizing on Schedule A. For civilian taxpayers, there is no moving expense deduction under any filing method, itemizing does not restore a deduction that no longer exists under current law.

Are moving expenses deductible for a job relocation?

No, not under current law. The Tax Cuts and Jobs Act eliminated the distance and time tests that once allowed civilian employees to deduct job-related moving costs, and the One Big Beautiful Bill Act made that elimination permanent. A civilian who moves 500 miles for a new employer cannot deduct any moving costs on a federal return, regardless of employment requirements or who initiates the move.

What records do you need to deduct military moving expenses?

Retain your official PCS orders confirming the qualifying permanent change of station, itemized receipts and invoices from moving companies or rental trucks, lodging receipts for travel to the new duty station, documentation of any government reimbursements received (including DLA payments), and your completed Form 3903 with the net deductible calculation. Per IRC Section 6501, keep all records for at least three years from the filing date.

Are employer-paid moving expense reimbursements taxable for civilians?

Yes. Under the Tax Cuts and Jobs Act, moving expense reimbursements paid by a civilian employer are no longer excludable from gross income. They are treated as ordinary wages, reported on Form W-2, and subject to income tax and payroll taxes. Per IRC Section 134, moving allowances paid to active duty military members by the government remain excluded from income and are not subject to this rule.

If you are a military member with complex moving cost records across multiple government reimbursement programs, or an intelligence community employee determining whether your 2026 move qualifies under the new provision, a tax professional can calculate the correct deductible amount. SuperMoney’s tax preparation services comparison includes CPAs and enrolled agents with experience in military tax filing and Schedule 1 above-the-line deductions. Homeowners who recently completed a PCS move may also want to review the rules for deducting closing costs on a home purchased at the new duty station.

Disclaimer:The information on this page is for general educational purposes only and does not constitute tax, legal, or financial advice. Tax laws are subject to change and vary based on individual circumstances. The content reflects IRS rules as of the date this article was last updated and may not account for recent legislative or regulatory changes. SuperMoney is not a licensed tax advisor, and nothing on this page creates an advisor-client relationship. Consult a licensed CPA or tax professional for guidance specific to your situation.

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