Current Rules on Moving Expense Tax Deductions
Relocating can add up quickly, from movers to supplies to storage. While a moving expenses tax deduction once helped offset those costs, the majority of taxpayers haven’t qualified since 2018. Understanding exceptions and what alternative saving strategies exist for moving expenses can prepare you better if you’re planning a move and making decisions.
Understanding the Old IRS Moving Expense Deduction
Tax laws in the U.S. used to allow taxpayers to write off moving expenses if their relocation was job‑related and met specific rules about distance and time. Eligible deductions included the cost of hiring movers, renting a truck, shipping belongings, and hotels when needed during the trip to a new home. The origin of the deduction was intended to ease the financial strain of moving, but it ended in 2018. It’s possible it could be reinstated in 2026 based on U.S. Congressional approval. If Congress approves it, then it would need to be signed into law by the President.
The 2017 Tax Cuts and Jobs Act: What Changed
Prior to 2018, taxpayers could deduct qualified moving expenses that are tax deductible, like movers, transportation, and storage, but these tax benefits were eliminated in 2018 through 2025 by the 2017 Tax Cuts and Jobs Act. The tax deduction could return in 2026.
Exceptions for Military and Special Situations
Active duty military members can still deduct eligible moving costs if they receive a permanent change of station and official orders. Eligible expenses must be unreimbursed, and military members can claim them by filling out IRS Form 3903 as an adjustment to income. This exception is likely to continue in the future.
Alternative Ways to Save on Moving Costs
One of the easiest ways to cut your family’s moving costs is to reduce the amount of your belongings. By donating, selling, or recycling items you don’t need, you’ll save money on your move. Fewer boxes mean less time spent loading and unloading, which lowers expenses. Also, if your moving date is flexible, book your move on a weekday or not during peak moving season to save money. Don’t pick the first moving company you find. Get quotes from at least 3 moving companies and ask for their best rates. Contact us at Not A Hobby Moving for a free estimate. We’ve been completing reliable and affordable Austin and Texas relocations for satisfied customers for many years, and you can depend on our expert moving teams to get the job done right.
Should You Still Track Your Moving Expenses?
Even though the 2017 Tax Cuts and Jobs Act suspended the federal moving expense deduction for most taxpayers through 2025, it’s still wise to track your moving costs. If the tax deduction returns in 2026, detailed records might be useful. If your employer reimburses you for moving expenses, you may need receipts to cover your moving expenses. If you keep track of what you spend on movers, supplies, storage, and travel, it will provide a true picture of your relocation costs and make it easier to save money on potential future moves.
