The federal moving expense deduction is off the table for almost everyone. A 2025 law made the suspension that started in 2018 permanent, so civilian workers and self-employed people can no longer deduct job-related moving costs under IRC Section 217. Two groups still qualify: active-duty members of the Armed Forces moving under orders, and, for moves after December 31, 2025, employees of the intelligence community.
Why Civilians No Longer Qualify
The Tax Cuts and Jobs Act of 2017 suspended Section 217 for tax years 2018 through 2025, with the deduction scheduled to return in 2026. It won’t. Section 70113 of Public Law 119-21, signed on July 4, 2025, struck the January 1, 2026 expiration date and rewrote the statutory heading to read “Suspension of deduction for taxable years beginning after 2017.”1United States Congress. Public Law 119-21 Unless Congress acts again, no civilian will claim this deduction on a federal return.
The same law permanently repealed the tax-free treatment of employer-paid moving reimbursements under Section 132(g). If your employer pays for your relocation, that money is now taxable wages. It shows up on your W-2 and is subject to income and payroll taxes, just like salary.
Who Can Still Deduct Moving Expenses
Active-Duty Military
Section 217(g) keeps the deduction open for active-duty members of the Armed Forces who relocate under a military order tied to a permanent change of station. The distance and time tests that once applied to civilian movers do not apply. You don’t have to prove the new duty station is at least 50 miles farther from your old home, and you don’t have to work a minimum number of weeks after arriving.2Office of the Law Revision Counsel. 26 USC 217 – Moving Expenses What you do need is official orders directing the move. Without them, the deduction is unavailable regardless of branch.
Intelligence Community Employees (Starting 2026)
For moves made after December 31, 2025, employees and new appointees of the intelligence community get the same treatment as active-duty military. Section 217(k)(2) extends the deduction to them when the move is tied to a change of assignment that requires relocation.3Office of the Law Revision Counsel. 26 USC 217 – Moving Expenses The intelligence community is defined by Section 3 of the National Security Act of 1947, covering agencies such as the CIA, NSA, and DIA, along with the intelligence elements of the military branches.4Internal Revenue Service. Topic No. 455, Moving Expenses for Members of the Armed Forces and the Intelligence Community
Which Moves Count as a Permanent Change of Station
The IRS recognizes three qualifying move categories:
- First post of active duty: from your home to your first permanent duty station after entering service.
- Post-to-post: from one permanent duty station to another.
- Final move home: from your last duty station back home, or to a nearer point within the United States, after leaving active duty.
The final-move category has a deadline. The relocation must happen within one year of ending active duty, or within the period allowed under the Joint Travel Regulations, whichever gives you more time.5Internal Revenue Service. Publication 3 – Armed Forces’ Tax Guide
If you’re stationed overseas and your spouse or dependents move to or from a different location than you do, each move can still qualify. The IRS treats the family member’s relocation as if they were starting work at a new job location, so the deduction applies to both moves separately.2Office of the Law Revision Counsel. 26 USC 217 – Moving Expenses
What You Can Deduct
Only unreimbursed costs count. If the military paid part of your move, you can deduct only what you paid out of pocket. Qualifying expenses fall into two categories.
Household Goods and Storage
You can deduct the reasonable cost of packing, crating, hauling, and shipping your household items and personal belongings. Storage and insurance for those goods are also deductible, but only for up to 30 consecutive days after the items leave your old home and before they arrive at the new one.5Internal Revenue Service. Publication 3 – Armed Forces’ Tax Guide If your goods sit in a warehouse for two months during a domestic move, only the first 30 days of storage fees are deductible.
Travel to the New Location
Transportation and lodging for you and your household members from the old home to the new one qualify. That includes airfare, gas, tolls, and hotel stops along the route. Meals do not qualify, even on a multi-day drive.5Internal Revenue Service. Publication 3 – Armed Forces’ Tax Guide
For vehicle costs, you have two options. Track actual out-of-pocket expenses like gas and oil, or use the IRS standard mileage rate. For 2026, that rate is 20.5 cents per mile for qualifying moves.6Internal Revenue Service. IRS Sets 2026 Business Standard Mileage Rate at 72.5 Cents Per Mile, Up 2.5 Cents The mileage rate is simpler; actual costs may produce a larger deduction if fuel expenses were high.
Overseas Moves Get Better Storage Treatment
Moves to or from a foreign country skip the 30-day storage cap. You can deduct the reasonable cost of storing and insuring your household goods for the entire time the overseas location remains your main job location.7Internal Revenue Service. Instructions for Form 3903 A three-year overseas tour means three years of potentially deductible storage fees. The rule applies to moves from the U.S. to a foreign country and from one foreign country to another.
Government-provided moving and storage services for overseas assignments are excluded from your gross income entirely. You don’t report the value of in-kind services the military furnishes for you, your spouse, or your dependents, and the Department of Defense is not required to report those amounts either.2Office of the Law Revision Counsel. 26 USC 217 – Moving Expenses
How to File the Deduction on Form 3903
Form 3903 is the only form you need. It totals your household-goods costs on line 1, adds travel and lodging on line 2, and subtracts any government reimbursements not already included in your W-2 wages (shown in box 12 with code P) on line 4.8Internal Revenue Service. Form 3903 – Moving Expenses
If your expenses exceed the reimbursement, the difference flows to Schedule 1 (Form 1040), line 14 as your deduction. If the reimbursement exceeds your expenses, the excess becomes additional income on Form 1040, line 1h. The deduction is an adjustment to income, so it lowers your adjusted gross income whether or not you itemize. That is more valuable than a typical itemized deduction, which only helps if your itemized total exceeds the standard deduction.8Internal Revenue Service. Form 3903 – Moving Expenses
Before filling out the form, gather your military orders, move dates, total mileage between residences, and receipts for every deductible expense. E-filing software will prompt you to attach Form 3903; paper filers include it with the return. Keep copies for at least three years after you file, the standard period during which the IRS can assess additional tax and ask you to prove your expenses.9Internal Revenue Service. Topic No. 305, Recordkeeping
State Returns May Still Allow a Deduction
The federal suspension does not bind state tax codes. A handful of states still allow a moving expense deduction on state income tax returns for job-related relocations, with rules that vary by state. If you recently moved for work and live in a state with an income tax, check your state’s filing instructions or contact the state revenue department to see whether a deduction is available.