Military Moving Expenses: Are They Tax Deductible?
Under the Tax Cuts and Jobs Act (TCJA), most civilians lost the moving expense deduction. However, Active Duty Military members are the exception. If you move due to a Permanent Change of Station (PCS), your unreimbursed moving costs are fully deductible. Here is how to claim it using Form 3903 without triggering an audit.
1. The Rule: PCS Orders are Mandatory
You generally cannot claim this deduction for a voluntary move or retirement move unless specified.
Who it applies to: Active Duty personnel on PCS orders are exempt from this test.
Practical Consequence: Even a short PCS move qualifies if expenses were unreimbursed.
2. Deductible vs. Non-Deductible (Checklist)
The IRS is specific about what counts as “Moving Expenses.”
| Expense Category | Deductible (Yes ✅) | Non-Deductible (No ❌) |
|---|---|---|
| Transportation | U-Haul, Gas, Shipping cars. | Sightseeing detours. |
| Storage | Storage up to 30 days. | Long-term storage. |
| Travel | Lodging on the way. | Meals (Food). |
3. Timeline: The Filing Window
You generally claim the deduction in the year the move occurred.
| Time Since Move | Status | Action |
|---|---|---|
| Year of Move | Primary | |
| +1 to 3 Years | Open | |
| 3+ Years | Closed |
4. Strategy: “Mileage” Rate
You have two choices for car expenses: Actual Expenses or Standard Mileage.
- Standard Mileage: For 2026, check the specific IRS moving mileage rate (different from business rate). It is often easier to track.
- Actual Expenses: You must keep receipts for gas and oil. This is usually better only if you drive a gas-guzzling vehicle.
5. Warning: Reimbursement Offset
You cannot profit from the move tax-free.
⛔ Box 12 Code P
Check your W-2 form.
- If the government paid for your move, the amount is often reported in Box 12 with Code P.
- You must subtract this amount from your total expenses.
- Rule: You can only deduct the expenses that exceeded the government payment.