What Foreign Moving Expenses Are Deductible if I Move Overseas?

 

Have you moved overseas for a job or to start a business? Do you need to know what foreign moving expenses are eligible for deduction? We can help.

In the past, U.S. taxpayers were able to deduct foreign moving expenses related to the costs of moving their household goods, travel expenses, and storage costs. However, the Tax Cuts and Jobs Act passed in 2017 eliminated this deduction for most taxpayers.

Foreign Moving Expenses Deduction Rules

Unless you are an active duty military member who is moving due to a military order, domestic and foreign moving expenses deductions are no longer available to you. The change to the moving expenses deduction rules starts with 2018 taxes and stays in place until 2025, unless Congress acts to extend the changes or make them permanent.

If you’ve moved overseas, you should be aware of additional tax reporting required of U.S. taxpayers living outside of the country. The rules for expat taxes can get complicated, so having an experienced tax professional at your side can help you get through your taxes.

For more information about tax obligations for living outside of the U.S., review H&R Block’s expat tax services.

Related Topics

Related Resources

Claiming a Non-Resident as a Dependent On Taxes

Can you claim someone as a dependent on your taxes, even if they've never lived with you? You may be surprised.

How to Choose A Filing Status

There are a variety of tax filing status options. Learn how to choose your tax filing status with the experts at H&R Block.

If I Change My Filing Status, How Does It Affect My Adjusted Gross Income?

Learn how a change to your filing status could affect your Adjusted Gross Income (AGI) for married taxpayers with the experts at H&R Block.

State And Local Tax When Claiming Itemized Deductions

Do you add state and local taxes together when claiming itemized deductions? Learn more from the tax experts at H&R Block.