Yes, mileage can be included in the moving expense calculation, but only under specific conditions and using the standard mileage rate. According to IRS Form 3903 (2025), you may deduct travel expenses from your old home to your new home, including car expenses. You have two options for calculating these expenses: (1) actual out-of-pocket expenses (e.g., gas, oil) with accurate records, or (2) the standard mileage rate of 21 cents per mile for 2025. Parking fees and tolls can be added to either method, but meals, general repairs, maintenance, insurance, or depreciation are not deductible.
Deductible Travel Expenses
- Standard Mileage Rate: 21 cents per mile for 2025 (as per Form 3903 and Publication 516).
- Actual Expenses: You may deduct actual costs for gas, oil, and other direct vehicle expenses if you maintain accurate records.
- Additional Deductible Costs: Parking fees and tolls may be added to either method.
- Non-Deductible Costs: Meals, general repairs, maintenance, insurance, depreciation, and unnecessary side trips are not deductible.
Important Restrictions
- Expenses must be reasonable and taken by the shortest, most direct route (Publication 516).
- If you use the standard mileage rate, you cannot deduct depreciation, lease payments, or actual operating expenses (Publication 463).
- For government employees or military personnel, reimbursements for moving expenses are generally not taxable if provided by the government for a permanent change of station (Form 3903).
Source:
Form 3903 (2025)
Publication 463 - Car Expenses and Standard Mileage Rate
Disclaimer: Always verify details with the current year’s IRS forms and instructions or consult a tax professional for personalized advice. The information provided is based on IRS publications and form instructions for 2025.