A permanent change of station (PCS) is a move by a member of the Armed Forces on active duty under a military order that meets one of the qualifying situations defined by the IRS and military regulations. A qualifying PCS is required to claim the military moving expense deduction.
Types of Moves Qualifying as a Permanent Change of Station
- Move from home to the first post of active duty — This includes a move from your home to your first permanent duty station upon appointment, enlistment, induction, call to active duty, or similar entry into active military service.
- Move from one permanent duty station to another — This includes a transfer between permanent duty stations under military orders.
- Move from the last permanent duty station to home or to a nearer point in the United States — The move must generally occur within 1 year after ending active duty or within the period allowed under the applicable military regulations.
Special Considerations for Spouses and Dependents
If a member of the Armed Forces deserts, is imprisoned, or dies while on active duty, a move by the spouse or dependent may qualify as a permanent change of station if the move is to:
- The member's place of enlistment or induction,
- The member's home of record, the spouse's home of record, or
- A nearer point in the United States.
If the military moves a service member and the member's spouse or dependents to different locations, the moves are generally treated as a single move to the service member's new permanent duty station for purposes of determining deductible moving expenses.
Eligibility and Reporting
- Only members of the Armed Forces on active duty who move because of a permanent change of station under a military order may claim the moving expense deduction under current law.
- Qualified unreimbursed moving expenses are figured on Form 3903, Moving Expenses, and carried to Schedule 1 (Form 1040), Additional Income and Adjustments to Income.
Military Reimbursements and Allowances
Certain military moving allowances, reimbursements, and government-provided moving services may be excluded from income under federal tax law. Examples may include qualified reimbursements for moving household goods and travel associated with a PCS.
Qualified moving expenses that are reimbursed or excluded from income cannot also be claimed as a moving expense deduction. Only qualified unreimbursed expenses are deductible.
Important Note
A move qualifies as a permanent change of station only when it is made pursuant to a military order and falls within one of the IRS-recognized PCS categories. Civilian job relocations do not qualify for the federal moving expense deduction under current law.
Source:
Publication 3, Armed Forces’ Tax Guide
Form 3903, Moving Expense Deduction
Publication 15-B, Employer’s Tax Guide
Disclaimer: Always verify details with current Federal or State Department of Revenue Forms and Instructions. Tax rules may change, and individual circumstances may require professional advice from a CPA or tax attorney.