Moving Expenses and Taxes: What Families Need to Know

Moving isn’t just stressful on your time and energy—it can also raise questions about taxes. Can you still deduct moving expenses? What happens if your company pays for your move? And what about military families facing a PCS order?

The rules around moving expenses have changed a lot in recent years, so here’s an updated guide to help you understand what applies in 2025.

Most Families Can’t Deduct Moving Expenses

For decades, taxpayers who moved for a new job could deduct some costs (packing, transportation, storage, etc.) if they met distance and time requirements.

But under the Tax Cuts and Jobs Act (TCJA) of 2017, the federal moving expense deduction was suspended for most taxpayers. This suspension runs through 2025—and new legislation makes that suspension permanent for non-military households.

That means:

• If you’re a civilian moving for work, you generally can’t deduct your moving costs on your federal taxes.
• Some states still allow a moving expense deduction or credit, so check your state’s tax code.

Military Families Still Have an Exception

If you’re an active duty member of the U.S. Armed Forces and your move is due to a Permanent Change of Station (PCS), you may still deduct certain unreimbursed moving costs.

Qualifying PCS moves include:

• From your home to your first duty post
• From one duty station to another
• From your last duty station back home within certain time limits

Deductible expenses can include:

• Cost of moving household goods and personal effects
• Travel (lodging, mileage, but not meals) for you and your family
• Up to 30 days of storage for household goods

More details: IRS – Topic 455: Moving Expenses (Military Only)
Military resource: Military OneSource – Deducting Military Moving Expenses

When Your Employer Pays for Your Move

Many employers help cover moving costs when they relocate an employee. But under current IRS rules, those payments are considered taxable income for most workers.

That means if your company pays for your move or reimburses you:

• The value of that benefit is added to your W-2 wages.
• You’ll pay regular income and payroll taxes on it.
• Even if your employer contracts directly with the moving company, the IRS treats it as taxable income to you.

The only exception: qualified moving expense reimbursements for active duty military PCS moves remain tax-free.

What If Reimbursements Are More Than Your Costs?

If your employer gives you a flat allowance (say, $10,000) but your actual moving expenses are only $8,000, the extra $2,000 is treated as taxable wages.

This rule applies to both civilians and military families—although military can still exclude qualified reimbursements from income.

Practical Tips for Families Moving in 2025

Even if you can’t deduct moving costs, it’s still smart to keep good records. Here’s what we recommend:

• Save all receipts for moving company fees, storage, fuel, and lodging.
• Track mileage if you drive your own vehicle (for military moves, the IRS sets the rate at 21¢ per mile for 2025).
• Know what doesn’t count—meals, security deposits, and home improvements are not deductible.
• Compare your reimbursement with actual costs so you know if any part counts as taxable income.
• Talk to a tax professional, especially if you’re military or relocating for work.

Bottom Line

• Most taxpayers can’t deduct moving expenses anymore.
• Military PCS moves remain eligible for deductions and tax-free reimbursements.
• Employer-paid moves count as taxable income (except for military PCS).

At Gerber Transfer & Storage, we’ve been helping families move for more than 80 years. We can’t give you tax advice, but we can take the stress out of the moving process itself—so you have one less thing to worry about at tax time.

Ready for a free moving estimate? Contact us today and let the Gerber family move your family.