Tax Implications of Moving Expenses
Moving for a job used to be deductible for everyone. Learn who can still deduct moving expenses and what changed after the TCJA.
Moving Expense Deductions
The TCJA Change (2018)
Prior to 2018, qualified moving expenses were deductible for most taxpayers.
The TCJA eliminated the deduction for most people from 2018 through 2025.
Who Can Still Deduct Moving Expenses?
Currently, only active-duty military members can deduct moving expenses when moving due to a permanent change of station (PCS).
Military can deduct:
- Transportation of household goods
- Travel to new location
- Storage (up to 30 days)
Employer-Paid Moves
If your employer pays or reimburses your moving expenses:
- Pre-TCJA: Employer reimbursements were tax-free
- Post-TCJA: Employer moving expense reimbursements are now taxable income (except for active military)
State Deductions
Some states still allow moving expense deductions even though the federal deduction is suspended. California, for example, continues to allow the deduction.
What Happens After 2025?
If TCJA provisions expire, moving expenses may become deductible again, subject to the original distance and time tests:
- Distance test: New job must be 50+ miles farther from old home than old job
- Time test: Must work full-time 39+ weeks in first year at new location
Relocated for a new job? We'll help you understand what (if anything) you can deduct.