Can Mileage Be Included in the Moving Expense Calculation?
Mileage expenses can be included in the calculation of moving expenses, but only under specific conditions and using the appropriate IRS-approved method.
Standard Mileage Rate for Moving Expenses
- For 2025, the standard mileage rate for using your vehicle to move to a new home is 21 cents per mile.
- This rate applies to the cost of operating your vehicle for moving purposes, including gas, oil, and maintenance.
- You may also add parking fees and tolls to the amount claimed under this method.
Eligibility and Reporting Requirements
- Moving expenses are deductible only if the move is closely related to the start of work at a new job location or a job transfer.
- Expenses must be directly related to the move and not reimbursed by an employer or government agency.
- Use Form 3903 to report moving expenses. Complete line 2 using either the standard mileage rate or actual expenses.
Important Notes
- Do not include expenses for moving services provided by the government.
- Do not include any expenses that were reimbursed by an allowance you don’t have to include in your income.
- Keep detailed records of your mileage and expenses to support your claim.
Source:
Form 3903
Publication 463
Publication 526
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions.