Tax Reform Eliminates the Moving Expense Deduction

February 02, 2018 : Brittany Benson – The Tax Institute

Under the old tax law, taxpayers could deduct the reasonable costs of moving household goods and personal effects, along with the travel costs of moving to the new home (excluding meals) if they qualified.

Under the prior moving expense deduction rules,, you could qualify if:  

  • Your employer can’t have reimbursed the moving costs and excluded the reimbursement from your income.
  • Your new work location was a certain distance from your former home (varies by circumstance).
  • You must have worked a minimum amount of time in the first one or two years after your move, depending on your employment status. Special rules applied to members of the armed services.

The latest tax reform  suspends the moving expense deduction

This change goes into effect for tax years beginning after December 31, 2017, through December 31, 2025. This means you will not be able to deduct moving expenses starting in tax year 2018. The only exception to the new law is for taxpayers who are members of the military on active duty who move pursuant to a military order.

If you moved during 2017, you can still deduct moving expenses on your 2017 tax return filed in 2018.

You should seek advice from a tax professional when trying to determine how these changes will affect you. For more information, schedule an appointment with your nearest H&R Block tax professional.

Related Topics

Related Resources

What To Do About the IRS Negligence Penalty

The IRS negligence penalty is 20% of the amount you underpaid your tax. Learn about your options to address it from the tax experts at H&R Block.

IRS Notice CP88 – The IRS Still Hasn’t Received Your Form 1040

Learn more about notice CP88, why you received it, and how to handle an IRS CP88 notice with help from the tax experts at H&R Block.

IRS Notice CP06A – Supporting Documentation Requested

Learn more about notice CP06A, why you received it, and how to handle an IRS CP06A notice with help from the tax experts at H&R Block.

Where Do Your Tax Dollars Go?

Whether you are a disgruntled or curious taxpayer, we're here to answer: "Where are my tax dollars going?"

Brittany Benson – The Tax Institute