Tax Deductions for Moving: What Qualifies and How to Document Expenses

Trying to figure out moving tax deductions, this couple looks puzzled while surrounded by boxes and forms—thankfully, My Dad’s Moving Inc. is parked outside, ready to help.

If you're planning a move in 2025, whether across town or across the country, there's one big question that might be on your mind: Can I write this off on my taxes?

It's a fair question. Moving isn't cheap, and anything that could reduce the financial burden is worth exploring. The answer depends on several factors, including your job status, location, and the type of expenses you're incurring. In this guide, we'll break down what moving expenses qualify for deductions, how to document them, and why hiring a mover like My Dad’s Moving Inc. can help make the process easier, especially for California residents.

Let’s get right into Tax Deductions for Moving and see if you can deduct any of your moving expenses.

Why Moving Expenses Are (Usually) Not Deductible Anymore

In 2017, the Tax Cuts and Jobs Act suspended the federal deduction for moving expenses for most people. This suspension is in effect until 2026. For now, the IRS only allows one group to claim moving-related tax deductions: active-duty military members moving due to a permanent change of station.

For everyone else, unless you live in a state with its own tax laws allowing deductions, such as California, moving costs are not federally deductible.

You can find the full details in TurboTax’s guide and IRS Form 3903.

State Exceptions: Does California Allow Moving Expense Deductions?

Understanding California’s Unique Tax Rules

While the IRS says no for most taxpayers, the California Franchise Tax Board has different guidelines. California allows certain residents to deduct qualified moving expenses if the move is related to starting a new job or relocating for work, and if distance and timing requirements are met.

In a high-cost region like the Bay Area, these deductions can offer significant savings. Working with a local tax advisor like KY Tax Service & Bookkeeping  helps ensure you're following the most current state rules.

Who Qualifies Under California Law?

To qualify for a state-level deduction in California:

• Your new job must be at least 50 miles farther from your old home than your old job was

• You must begin work within one year of the move

• The move must be closely related to starting the new job

If this sounds like your situation, keep reading. You may be eligible to claim some of those expenses.

What Moving Expenses Are Tax Deductible (If You Qualify)?

Deductible vs. Non-Deductible Expenses (Explained Simply)

Here’s a breakdown of what you can and cannot deduct.

Deductible expenses may include:

• Professional packing and moving services

• Transportation of household goods

• Storage for up to 30 days

• Lodging during the move (excluding meals)

• Utility disconnection and reconnection fees

• Mileage or fuel costs (IRS rate is 21 cents per mile for 2024)

Not deductible:

• Meals while traveling

• Costs of selling or purchasing a home

• Lease termination fees

• House-hunting trips

• Any expenses paid for or reimbursed by your employer

For more details, review the ZipMoving 2025 Guide.

A Special Note for Military Moves

If you're active-duty military and moving under a permanent change of station, you're still eligible for a federal deduction. Use IRS Form 3903 to claim those expenses.

Eligible costs for military personnel include:

• Travel and lodging for you and your household

• Transportation for pets

• Moving company costs

• Packing materials and crating services

You can find the full list of qualified expenses in the IRS instructions for Form 3903.

How to Properly Document Moving Expenses for Tax Time

What the IRS Wants to See

If you qualify for a deduction at the state level or are claiming it as military, documentation matters. The IRS and California tax authorities expect complete and organized records.

Be sure to save:

• Itemized invoices from the moving company

• Hotel or lodging receipts

• Storage unit receipts

• Gas receipts or mileage logs

• Job offer letters or proof of job change

• Utility setup or disconnection notices

Tools and Templates to Make it Easier

Keep things simple by starting a moving expense folder as soon as you start planning. Use a spreadsheet, app, or even a folder of scanned receipts.

My Dad’s Moving Inc. provides itemized invoices to all clients, making it easier to document what you spent and why.

Business vs. Personal Moves: What’s Deductible for Companies?

Tax Deductions for Business Relocation

If you're a business owner relocating your office or warehouse, some of your costs may be deductible under standard business expense rules. This includes:

• Transporting office furniture and equipment

• Professional packing services

• Storage or temporary rental during the transition

• Moving contractors or logistics planning

This type of deduction is separate from personal relocation and may qualify under Section 162 of the Internal Revenue Code.

Consider hiring My Dad’s Moving Inc. for commercial moves to ensure everything is documented correctly.

Employee Moves Paid by Employers

If you're reimbursing an employee for a move, those funds are generally considered taxable income to the employee. However, some companies offer "grossed-up" benefits to offset the tax impact.

Read more about that in this relocation tax guide.

How My Dad’s Moving Inc. Helps With Tax-Smart Relocations

Rick Lopez Jr. and Sons ready to make this move, your best move!

Transparent Invoicing and Record-Keeping Support

At My Dad’s Moving Inc., we take documentation seriously. Whether you're moving for a job, relocating your business, or part of a military family, our services come with detailed records that simplify tax filing.

We provide:

• Dated, itemized invoices

• Clearly separated charges for packing, labor, travel, and materials

• Flexible documentation based on your CPA’s needs

To request specific paperwork, contact us before or after your move.

Serving California Residents and Military Families

We specialize in California moves and understand the paperwork and tax considerations that come with them. We also offer specialized support for military families on PCS orders, including storage, logistics coordination, and detailed receipts.

FAQ: Tax Deductions for Moving (2025)

Can I claim moving expenses on my federal taxes in 2025?

Only active-duty military members moving due to a change of station can claim these expenses. For all others, the federal deduction is suspended until 2026.

What are the requirements for claiming a moving deduction in California?

To qualify, you must be starting a new job and meet distance and time-related tests. The move must be work-related and take place within one year of starting the job.

How do I use IRS Form 3903?

IRS Form 3903 is used to calculate and report your qualified moving expenses. It’s only available to eligible taxpayers such as military members. Full instructions can be found here.

What documents should I save for my moving tax deduction?

You’ll need receipts, invoices, mileage logs, storage bills, utility records, and any employment-related documents showing the reason for your move.

Can I deduct moving expenses for a job relocation in another state?

Yes, if your new state allows it. California is one of the few states that currently offers moving deductions. For best results, consult a professional like KY Tax Service & Bookkeeping of San Martin, CA..

Conclusion

Moving can be expensive, but if you qualify for a deduction, those costs may work in your favor at tax time. Whether you’re a business owner relocating your company or a California resident starting a new job, the key is proper documentation and working with the right partners.

My Dad’s Moving Inc. offers transparent pricing, experience with military and business moves, and the kind of paperwork your tax advisor will appreciate.

Reach out today to schedule your move or request a quote. We’ll help you get from Point A to Point B without leaving your tax benefits behind.