Get 15040E Contents Introduction

Tax deductions for moving expenses The 2017 Tax Cuts and Jobs Act changed the rules for claiming the moving expense tax deduction. For most taxpayers, moving expenses are no longer deductible, meaning you can no longer claim this deduction on your federal return.

For tax years beginning after 2017, you can no longer deduct moving expenses unless you are a member of the Armed Forces on active duty and, due to a military order, you move because of a permanent change of station.

For 2017, the standard mileage rate for using your vehicle to move to a new home is 17 cents a mile. Use Form 3903 to figure your moving expense deduction for a move related to the start of work at a new principal place of work (workplace).

Presently, Form 3903 is only available to active members of the US military. There are no qualifying distance or time requirements for members of the armed forces who utilize the deductions.

The rules governing the IRS ability to pay for relocation expenses for new and current employees are as follows: The employee is transferring from one duty station to another for permanent duty and the new duty station is at least 50 miles from the old duty station.

Moving expenses can be recorded on IRS Form 3903. This form is only for taxpayers who are moving for work and are an active-duty member of the armed forces. Your moving expenses will be eligible as long as you meet the necessary requirements.

For tax advice on moving expenses, refer to the Internal Revenue Service (IRS) Publication 521 – Moving Expenses, or any local IRS office. For federal income, Social Security, and Medicare tax questions, refer to the IRS. For state income tax questions, refer to the Franchise Tax Board.

Use Form 3903 to figure your moving expense deduction if you are a member of the Armed Forces on active duty and, due to a military order, you move because of a permanent change of station.