Until 2018, many people deducted the cost of a job-related move. That changed, and the rule is now narrow. This guide sets out who qualifies, what the IRS counts as a moving expense and the paperwork worth keeping. It is general information, not tax advice, so confirm details with a tax professional.
Who can deduct
According to IRS Tax Topic 455, a member of the Armed Forces on active duty may deduct unreimbursed moving expenses, or exclude reimbursed ones, for themselves, a spouse and dependents if the move is due to a military order and incident to a permanent change of station or a change of assignment that requires relocation. The topic also says that employees or new appointees of the intelligence community who move in 2026 or later may be treated as members of the Armed Forces for moving expenses.
A permanent change of station includes a move from home to a first post of duty, from one permanent post to another and from the last post of duty to home or a nearer point in the United States, within the time the IRS allows.
What counts as a qualified expense
For those who qualify, eligible expenses include household goods, personal effects, storage and travel, including lodging, to the new home, provided the amounts are reasonable. The IRS says you cannot deduct meals. Expenses are figured on Form 3903 and carried to Form 1040 as an adjustment to income.
If you are not in that group
Households outside those groups cannot claim the federal moving deduction. If an employer pays for or reimburses your move, ask the employer how it reports that payment, because the treatment of the payment can affect your pay statement. Nevada does not collect a personal income tax, and the Nevada Department of Taxation explains the taxes that do apply, so a move to the state from a high-tax state changes the state side of the picture. Read the taxes for new Reno residents page for the Nevada overview.
Business and office moves
Businesses treat relocation costs under separate rules, and the treatment can depend on the type of expense. Keep the estimate, bill of lading, inventory and invoices for an office move, and ask your accountant how each category should be recorded.
Records worth keeping
- The written estimate, bill of lading and inventory.
- Invoices and receipts for the move, packing, storage and travel.
- Military orders showing the change of station, if they apply.
- Proof of payment, such as bank or card statements.
- Employer reimbursement paperwork and the dates it was paid.
Keep them with your tax records for as long as your tax professional advises. For military families, the military moving page explains how O'Brien's works with government-arranged household goods moves.