Tax Tips

To deduct moving expenses, you generally must meet certain time and distance tests. However, if you are a member of the Armed Forces on active duty and you move because of a permanent change of station, you don't have to meet these tests. You can deduct your unreimbursed moving expenses on Form 3903.

Permanent Change of Station

A permanent change of station includes the following:

• A move from your home to your first post of active duty.
• A move from one permanent post of duty to another.
• A move from your last post of duty to your home or to a nearer point in the U.S. The move must occur within 1 year of ending your active duty or within the period allowed under the Joint Federal Travel Regulations.

Spouse and Dependents

If you are the spouse or dependent of a member of the Armed Forces who deserts, is imprisoned or dies, a permanent change of station for you includes a move to any of these locations:

• to the member's place of enlistment or induction.
• to your or the member's home of record.
• a nearer point in the U.S.

If the military moves you to or from a different location than the member, the moves are treated as a single move to your new main job location.

Deductible Moving Expenses

You can deduct the unreimbursed expenses of moving your household goods and personal effects, including expenses for hauling a trailer, packing, crating, in-transit storage and insurance.

You can include only the cost of storing and insuring your household goods and personal effects within any period of 30 consecutive days after the day these goods and effects are moved from your former home and before they are delivered to your new home.

You can deduct the expenses of traveling (including lodging but not meals) from your old home to your new home, including car expenses and air fare.

Foreign Moves

A foreign move is a move from the U.S. to a foreign country or from one foreign country to another foreign country. It's not a move from a foreign country to the U.S.

For a foreign move, the deductible moving expenses described earlier are expanded to include these reasonable expenses:

• moving your household goods and personal effects to and from storage.
• storing these items for part or all of the time the new job location remains your main job location.

If the military moves you to or from a different location than the member, the moves are treated as a single move to your new main job location.