Military Moving Expenses and Form 3903

Members of the Armed Forces on active duty may be able to deduct moving costs. Reimbursed costs may be excluded from income instead. The move must be due to a military order. It must also be a permanent change of station, or a change of assignment that requires relocation. IRS: Topic no. 455, Moving expenses for members of the Armed Forces

What counts as a permanent change of station

The IRS lists three kinds of moves. The first is a move from your home to your first post of active duty. The second is a move from one permanent post of duty to another. The third is a move from your last post of duty to your home, or to a nearer point in the United States. IRS: Topic no. 455

A move from your last post must happen within 1 year of ending active duty. It can also happen within the period allowed under the Joint Travel Regulations. IRS: Topic no. 455

Which expenses qualify

Eligible moving expenses include household goods, personal effects, storage, and travel to your new home. Travel can include lodging. The amounts must be reasonable for the circumstances of your move. You cannot deduct meals. IRS: Topic no. 455

Costs for your family

The expenses of a spouse or dependent due to a permanent change of station may also be eligible. The IRS points to Publication 3, Armed Forces' Tax Guide, for those details. IRS: Topic no. 455

Reimbursed moves

You can deduct the unreimbursed part of qualified moving expenses. You can exclude the reimbursed part from income, if the amounts are reasonable. You cannot deduct any moving expense that the government paid or reimbursed and that is excluded from your income. IRS: Topic no. 455

If your orders pay for part of a move and you pay for the rest, only the part you paid can be deducted. Keep a clear split between the two amounts.

Illustration only, with made-up numbers. Sergeant Ruiz receives orders to move from one base to another. The government pays the moving company for her furniture. She pays $400 for lodging on the drive and $120 for meals. The lodging may be eligible if it was not reimbursed and it was reasonable. The meals are not eligible.

How to report it

Figure your moving expenses on Form 3903, Moving Expenses. The IRS uses that form for the deduction. You then deduct the amount as an adjustment to income on Form 1040, Form 1040-SR, or Form 1040-NR. Attach Schedule 1 (Form 1040). IRS: Topic no. 455 and IRS: About Form 3903

Storage fees only

Form 3903 is not required in one case. You moved outside the United States in an earlier year and you claim only storage fees while you were away. Also, any amount the government paid for those storage fees must be in box 1 of your Form W-2. In that case, report the storage fees on Schedule 1 (Form 1040), line 14. Write "Storage" on the dotted line next to the amount. IRS: Topic no. 455

Records to keep

Keep the military orders, moving company invoices, receipts for storage and travel, lodging receipts, and any statement of reimbursement. Note the dates you traveled. These records support the amounts on Form 3903.

Steps to take

Confirm the move was due to a military order and was a permanent change of station.
Separate the costs the government paid from the costs you paid.
Leave out meals and any costs that are reimbursed and excluded from income.
Complete Form 3903 and carry the deduction to Schedule 1 (Form 1040).
Keep your receipts and orders with your tax records.

General information, not advice about your return.

Sources: Sources: IRS, Topic no. 455, Moving expenses for members of the Armed Forces and the Intelligence Community (https://www.irs.gov/taxtopics/tc455); IRS, About Form 3903, Moving Expenses (https://www.irs.gov/forms-pubs/about-form-3903) This is general information, not advice about your specific return.

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