Moving can be costly and stressful, especially for members of the U.S. Armed Forces who often relocate due to military orders. While most taxpayers lost the ability to deduct moving expenses under the Tax Cuts and Jobs Act (TCJA), an important exception remains in place for active-duty military members. If you’re serving in the military and moved due to a Permanent Change of Station (PCS), you may be eligible to deduct many of your moving costs on your federal tax return. This guide explains who qualifies, what expenses are deductible, and how to claim the deduction properly.
Who Is Eligible to Deduct Moving Expenses?
Under current tax law, the moving expense deduction is generally suspended for tax years 2018 through 2025—except for active-duty members of the U.S. Armed Forces. To claim the deduction, you must meet the following criteria:
- You are a member of the Armed Forces (Army, Navy, Air Force, Marine Corps, or Coast Guard).
- You moved due to a Permanent Change of Station (PCS) order.
- Your move was not reimbursed in full by the government or another source.
Qualifying moves include relocations to your first duty station, a transfer from one permanent post to another, or a move upon separation or retirement from active duty (if the move is within one year of ending service).
What Is a Permanent Change of Station (PCS)?
A PCS is an official relocation of an active-duty military member to a different duty station. PCS orders are issued in writing and may involve domestic or overseas assignments. Only moves related to a PCS qualify for the moving expense deduction. Temporary relocations or voluntary moves do not qualify.
Which Moving Expenses Can Be Deducted?
Qualified moving expenses must be reasonable and directly related to your move. The IRS allows the following types of unreimbursed expenses to be deducted:
1. Transportation and Travel
- Cost of transporting household goods and personal property to your new home
- Travel expenses for yourself and household members (includes vehicle mileage, airfare, lodging, tolls, and parking)
Note: Meals during travel are not deductible.
2. Mileage for Driving Your Vehicle
You may choose to deduct actual vehicle expenses (e.g., gas and oil) or use the IRS standard mileage rate for moving. For 2025, the moving mileage rate is projected to be around 22 cents per mile (subject to annual adjustment).
3. Storage Costs
- The cost of storing and insuring your household goods for up to 30 consecutive days after leaving your old home and before delivery to your new home
4. Shipping Pets
Expenses related to transporting your pets to your new location may also be included, as they are considered part of your household move.
What Expenses Cannot Be Deducted?
Not all relocation-related costs are deductible. The following are non-deductible under IRS guidelines:
- Costs of buying or selling a home (e.g., real estate commissions, closing costs)
- Pre-move house hunting trips or temporary lodging before the move
- Security deposits or lease break fees
- Meals during travel
- Any expenses paid by the government or reimbursed through other sources
How to Claim the Moving Expense Deduction
Eligible Armed Forces members claim the deduction using Form 3903 – Moving Expenses. This form must be attached to your federal income tax return (Form 1040).
Steps to File:
- Fill out Form 3903 with your total eligible expenses, including transportation, lodging, and storage costs.
- Subtract any reimbursements you received from the government or other sources.
- Transfer the net deductible amount to Schedule 1 (Form 1040), Line 14.
- Attach both Form 3903 and Schedule 1 to your tax return.
Tip: Maintain clear records, including receipts, mileage logs, and copies of PCS orders in case of IRS review.
Recordkeeping Requirements
The IRS expects you to maintain thorough documentation to support your moving deduction claim. Be sure to keep:
- Written PCS orders
- Receipts for moving company payments, lodging, and storage fees
- Travel logs and mileage records for personal vehicle use
- Proof of any reimbursements received and amounts
It’s a good practice to retain these documents for at least three years after filing your return.
Can You Deduct Expenses If the Military Reimbursed You?
If the military reimbursed you fully for moving expenses, you cannot claim a deduction. However, if you were only partially reimbursed or paid out-of-pocket for some services, you may deduct the unreimbursed portion.
For example, if your move cost $5,000 and the government reimbursed you $3,000, you may be eligible to deduct the remaining $2,000 if the expenses meet IRS criteria.
Impact of State Taxes
In some states, the federal moving expense deduction for military members may also be allowed on your state return. However, each state has different tax laws, so consult your state’s tax agency or a tax professional to determine eligibility for state deductions.
Maximizing the Benefit
To ensure you get the most from your deduction:
- Time your relocation-related expenses within the same calendar year when possible.
- Use a checklist to identify every qualifying cost before filing.
- Work with a tax advisor who understands military-specific deductions if your move involved complexities such as overseas orders or dual-state taxation.
Conclusion
Although most taxpayers can no longer deduct moving expenses, this valuable deduction is still available to active-duty members of the Armed Forces who move due to a Permanent Change of Station. By understanding the rules, tracking eligible expenses carefully, and completing Form 3903 accurately, military families can reduce their tax liability and recover some of the financial burden associated with relocation. If you qualify, don’t leave this deduction on the table—it’s one of the few tax relief options tailored specifically to those who serve.
