Military Members and Moving Expense Deductions
If you are an active-duty member of the Armed Forces, you may qualify for a moving expense deduction if your relocation was due to a military order and a permanent change of station (PCS). This deduction applies to unreimbursed moving expenses incurred by you, your spouse, and your dependents.
What Qualifies as a Permanent Change of Station (PCS)?
A permanent change of station includes the following types of moves:
From your home to your first active-duty post.
Between permanent duty stations (from one assignment to another).
From your last duty station to your home or a closer location in the United States.
For the final relocation (from your last post of duty), the move must take place within one year of ending your active service or within the time frame specified under the Joint Travel Regulations.
Additionally, moving expenses for your spouse or dependents due to a PCS may also qualify for the deduction. For detailed information, see Publication 3: Armed Forces’ Tax Guide.
Eligible Moving Expenses
You can deduct reasonable moving expenses related to your relocation. Qualifying expenses include:
Household goods and personal effects: Costs to transport or store items during the move.
Travel expenses: Transportation and lodging costs while relocating to your new residence.
Storage fees: The cost of storing your household goods for up to 30 consecutive days after moving.
🚫 Non-deductible expenses:
Meal costs during the relocation are not deductible.
How to Report Moving Expenses
To claim the deduction:
Use Form 3903, Moving Expenses, to calculate your eligible expenses.
Deduct the amount as an adjustment to income on:
Form 1040 (U.S. Individual Income Tax Return)
Form 1040-SR (U.S. Tax Return for Seniors)
Form 1040-NR (U.S. Tax Return for Nonresident Aliens)
Attach Schedule 1 (Form 1040), Additional Income and Adjustments to Income.
✅ Exception:
You don’t need to use Form 3903 if:
You previously relocated outside the U.S. in a prior year.
You are claiming only storage fees while living abroad.
The government reimbursed you for the storage fees, and the reimbursement is included in Box 1 of your Form W-2.
In this case, report the storage fees directly on Schedule 1 (Form 1040), Line 14, with the label "Storage" written next to the amount.
Government Reimbursements and Exclusions
You cannot deduct moving expenses that were:
Reimbursed by the government, or
Paid directly by the government and excluded from your income.