Are Moving Expenses Tax Deductible​

Your boss just offered you a promotion. Great news, except the job is in Milwaukee and you live in Green Bay. The moving company quote hits your inbox at $3,800. Your neighbor swears he deducted moving costs on his taxes years ago, so you start wondering are moving expenses tax deductible and if the IRS will help cover this.

Bad news: he probably can’t anymore. For most Americans, moving expenses haven’t been tax deductible since 2018. Unless you’re active-duty military with relocation orders, you’re paying for that move with money you’ve already paid taxes on.

What Happened to the Moving Expense Deduction

The Tax Cuts and Jobs Act eliminated the moving expense tax deduction for regular taxpayers back in 2017. The suspension runs through the end of 2025, meaning you cannot deduct moving expenses on your federal tax return this year.

Before that tax law changed, millions of families could deduct moving expenses when relocating for work. If your new workplace was at least 50 miles farther from home than your old one, you could write off costs associated with moving. About 72% of people claiming this break earned under $100,000, making it a solid middle-class tax deduction.

Who Can Still Deduct Moving Expenses in 2025

Active-duty military members kept their moving expense deduction when everyone else lost theirs. If you’re in the Armed Forces relocating under military orders for a permanent change of station, you can still deduct your moving expenses on your federal return.

Moves that qualify for military deduction:

• Home to your first active duty assignment
• One permanent duty station to another
• Last duty station back home (within one year of leaving service)
• Reserve or National Guard on active duty orders due to a permanent change of station

The deduction covers you, your spouse, and members of your household. Members of the U.S. intelligence community might qualify under specific circumstances, but that’s rare and requires checking with your agency.

Here’s the thing: you can only claim unreimbursed moving expenses. The government reimburses most moving costs or pays for directly by the government. You can deduct expenses above what they reimbursed, but not costs paid for directly.

What Counts as Deductible Moving Expenses (If You Qualify)

For the small group eligible to deduct, certain expenses make the cut while others don’t. An active-duty military member must use IRS Form 3903 to claim the moving expense tax deduction.

Moving expenses you can deduct:

• Hiring professional movers like Green Bay Moving Co. for packing, installation, and transport
• Transportation costs including the standard mileage rate of 21 cents per mile for 2025
• Actual expenses for gas and oil if you track every receipt
• Parking fees and toll charges either way
• Airfare for family members
• Lodging while traveling to your new home
• Storage for up to 30 consecutive days between residences
• Moving your household goods and personal effects

What you can’t deduct:

• Expenses for meals during travel
• House hunting trips before relocating
• Costs of buying or selling homes
• Breaking your lease or security deposits
• Cleaning, repair, or installation services for your old home
• Temporary housing beyond direct travel expenses

The IRS requires you work full time for at least 39 weeks during the first 12 months after your move to a new location. Self-employed individuals must meet stricter requirements. You must be at least 50 miles farther from your new workplace than your old home was.

State Tax Rules for Moving Expenses

Some states created their own moving expense deduction when the federal government suspended theirs. California, Massachusetts, New York, Arkansas, and Hawaii still allow state tax deductions with various restrictions.

Wisconsin follows federal tax law closely. The state doesn’t offer civilians a separate moving expense deduction. Military members can use federal rules for both their federal tax return and state tax filings.

Are Moving Expenses Tax Deductible

States without income tax like Florida or Texas don’t factor in at all. Moving from Appleton to Tampa means Wisconsin’s lack of deduction becomes irrelevant once you’re a Florida resident.

How to Claim the Moving Expense Deduction

Active-duty military members need IRS Form 3903 to claim work-related moving expenses. This separate form attaches to your Form 1040. Complete one form per move if you relocated multiple times during the tax year.

Required documentation:

• Moving company invoices for household goods and personal effects transport
• Mileage logs or gas receipts showing per mile for 2025 calculations
• Hotel and lodging bills showing travel costs
• Storage facility statements
• Copies of military orders
• Proof of unreimbursed moving expenses and allowable expenses

Transfer your total from IRS Form 3903 to Schedule 1 of your federal return. Keep records for at least three years after filing. Tax software walks you through the process, but complex moves often benefit from hiring a tax professional during tax season.

Budgeting Moves Without Tax Relief

Most people need to plan the costs of moving as straight expenses with no tax refund relief coming. Local Green Bay area moves run $500 to $2,000 depending on size. Green Bay to Milwaukee costs $1,500 to $4,000 for typical households moving to another state or new location.

Always add 20% to your budget for surprises. You might need extra cleaning, repair, or installation services. Your dates shift and prices change.

Green Bay Moving Co. gives upfront pricing with zero hidden fees. That transparency helps Wisconsin families budget accurately for moves around Green Bay, Appleton, Manitowoc, and Oshkosh.

Ask your new employer about relocation assistance. Some companies pay lump sums or reimburse documented costs. Just know that employer-paid moving help typically increases your taxable income, affecting your tax return even if you’re able to claim some deductions.

What Might Change in 2026

The Tax Cuts and Jobs Act expires December 31, 2025. Unless Congress acts through “one big beautiful bill” or similar tax reform legislation, the moving expense deduction could automatically return for the 2025 tax year with the old distance and time requirements.

Industry groups want it back sooner. They pushed Congress to reinstate the deduction, focusing on workforce mobility. Congress could extend the suspension, make it permanent, or let it expire. Nobody knows yet.

Green Bay Moving Co. tracks these changes because they affect how families budget relocations. We provide detailed invoices that meet IRS requirements in case laws change and you’re able to deduct your moving expenses again.