Can You Claim Moving Expenses As a Tax Deduction?

The process of moving from one home to another is a long and often expensive journey. However, for many years, people would simply deduct some of the costs that they incurred during their move. Supplies, moving services, and gas were among some of the deductible items. Today, however, things are much different than they used to be. This has left homeowners wondering if their moving expenses are still even tax-deductible. The answer to that is it depends. Therefore, the following includes detailed information regarding the state of this tax deduction.

Moving Costs Are NOT Deductible

The simple answer is that moving costs are no longer tax-deductible. So what changed? First, let’s look at the past. Through the Tax Cuts and Jobs Act, people were able to deduct the costs involved in their moves if they could prove that they were moving locations to obtain a job. In fact, these were above-the-line deduction, which means that a person didn’t have to itemize their deductions when they eventually filed a federal tax report. The perk was removed in 2018 and no longer available to citizens until the 2025 tax year.

Who Can Deduct Their Moving Costs?

As of the current moment, only active-duty military personal can take advantage of the tax deductions. However, they must prove that they are moving due to base relocation. They must also provide proof of the expenses, such as hiring moving companies in Las Vegas. In addition, some states across the country are implementing their own tax deductions pertaining to moving. However, these will only be allowed to be inserted into their state tax returns. Some of the states doing this now are New York and California.