Can I deduct moving expenses on my taxes in 2025?

For most taxpayers, the federal moving expense deduction is suspended from 2018 through 2025 under the Tax Cuts and Jobs Act. The only exception is for active-duty members of the Armed Forces who move due to a military order for a permanent change of station.

Military exception details: Active-duty service members can deduct reasonable moving expenses including transportation of household goods, travel and lodging costs (but not meals) for the move, and storage of household goods for up to 30 days. Report on Form 3903 and deduct on Schedule 1, line 14. This is an above-the-line deduction, so you do not need to itemize.

State-level deductions: Several states still allow a moving expense deduction on state returns even though the federal deduction is suspended. States that may allow it include New York, California, Massachusetts, and Pennsylvania. Check your specific state tax instructions.

Employer reimbursement: If your employer reimburses moving expenses, those reimbursements are currently treated as taxable wages and included on your W-2 (except for military moves). Before the TCJA, employer-paid moving expenses were excludable from income. Some employers gross up the reimbursement to cover the additional tax.

Looking ahead: The TCJA provisions regarding moving expenses are scheduled to expire after 2025. If Congress does not extend the TCJA, the moving expense deduction could return for the 2026 tax year. The previous rules required the move to be related to starting a new job and meet a 50-mile distance test.