Man on sofa with laptop calculating moving costs A household relocation is usually filled with excitement and anticipation. Along with all that positive energy, the chances are good that you are dreading the moving expenses that go along with it.

If you made a household move before 2018, you might have qualified for a tax deduction then, but new laws have changed the moving landscape regarding tax deductions.

Except for some armed forces members and their families, the Tax Cuts and Jobs Act of 2017 eliminated the deduction for moving costs for most taxpayers between 2018 and 2025. 

Though it’s been a while since the “2017 Tax Cuts and Jobs Act” was passed, confusion about the tax deductibility of moving expenses remains.

What was deductible?

Before 2018, moving expenses, under certain circumstances, were tax deductible on Federal tax returns. The premise was to allow people who moved to take a job to offset the cost of moving. The deductibility depended on the timing of the move relative to taking on the new job, the job status (full-time), and distance; the new job had to be at least 50 miles further from the prior home than the preceding job. 

The deduction was allowed for certain aspects of moving. Things like gas, mileage, storage, truck rental, etc., were deductible when itemized. 

What has changed?

The 2017 Tax Cuts and Jobs Act suspended the deduction for moving expenses from 2018 through 2025. While individuals may still amend tax returns for years before 2018, no deductions are available for current tax years through 2025. 

Can active military personnel deduct moving expenses?

Military personnel might still be able to deduct moving expenses using Form 3903. As part of the information collected on this form, individuals include any moving reimbursements from their employer. Only valid expenditures over the reimbursements qualify for deductions.  Experts recommend consulting a tax professional for specific deduction advice. 

Determine your eligibility.

Regardless of the distance, relocation can be costly. It is crucial to do your homework and find out which state moving expense deductions you might still be qualified for, even though the Federal moving expense deduction might no longer apply (at least for the time being). 

As with any tax matter, individuals should speak with their tax professionals to see if they qualify for any state deductions.

Uncomplicate your move.

You can rely on the skilled local movers at Sorensen Moving & Storage to deliver top-notch moving services at an affordable price, regardless of the distance you are moving. There is a good reason why our local moving company is among the most dependable in Central Florida and on the Space Coast!

Our professional staff has been honing the relocation process for over 65 years, making it the best value in the business. Whether it is a big or small move, we want it to be hassle-free for you. In addition to our adaptable moving services, we also provide an exceptional experience for our customers throughout the entire process. Request a free moving estimate today!