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Moving Expenses

Suspended 2018 through 2025 except for Military and Perhaps State

Overview

  • Distance Test: 50 Miles (Greater driving distance from old home)
  • Time Test:
    • Employee: Full time 39 weeks of first 52 weeks.
    • Self-Employed: 39 weeks of first 52 weeks plus 78 weeks of first 104 weeks.
    • Exceptions: Death, disability, layoff, or transfer.
    • 2024 Mileage Rates: 21 cents per mile
    • Domestic Moving Deduction Suspended 2018 thru 2025 except active-duty military pursuant to military order
    • Employer Reimbursement: Taxable 2018 - 2025
Related IRC and IRS Forms and Publications
  • Pub 521 – Moving Expenses
  • Pub 54 – Tax Guide for U.S. Citizens and Resident Aliens Abroad (for Foreign Moves)
  • Form 3903 – Moving Expenses
  • IRC Sec 217
  • IRC 911 – Foreign Moves

Before 2018 and after 2025, taxpayers who move because of a change of work location may deduct certain related expenses. The moving expense deduction is available for both employees and self-employed individuals if specific conditions are met; this includes taxpayers starting their first job. When moving expenses exceed reimbursements, the excess is an adjustment to gross income.

Exception - This provision continues to apply in 2018 through 2025 for moving expenses of members of the Armed Forces on active duty who move pursuant to a military order. (IRC Sec 217(k), added by TCJA)


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