For members of the Armed Forces on active duty who move due to a permanent change of station (PCS) under a military order, moving expenses may be deductible using Form 3903. The deduction is reported on Schedule 1 (Form 1040), line 14, as specified in the Form 3903 instructions. Specifically, after completing Form 3903, the moving expense deduction (calculated on line 5 of Form 3903) is entered on Schedule 1 (Form 1040), line 14. If you are filing Form 2555 to exclude foreign earned income, you must report the full amount of deductible moving expenses on Form 3903 and Schedule 1 (Form 1040), line 14, while allocating any portion attributable to excluded income to Form 2555.
Deductible Moving Expenses
- Moving household goods and personal effects: Includes packing, crating, hauling a trailer, in-transit storage, and insurance.
- Travel expenses: Includes transportation (car or airfare), lodging (within limits), and parking/tolls. Meals are not deductible. You may use either actual out-of-pocket expenses or the standard mileage rate of 21 cents per mile for car expenses.
Nondeductible Expenses
- Purchase price of new home
- Car tags, driver’s license
- Expenses related to buying or selling a home (closing costs, mortgage fees, points)
- Lease-related expenses
- Home improvements to sell your home
- Loss on sale of home or club memberships
- Mortgage penalties, real estate taxes
- Refitting carpet and draperies
- Return trips to former residence
- Security deposits
- Storage charges (except in-transit or for foreign moves)
Important Notes
- You must be a member of the Armed Forces on active duty and moving due to a military order for a permanent change of station.
- Do not deduct expenses reimbursed by the government or covered by allowances not included in income.
- Use a separate Form 3903 for each qualifying move.
Source:
Form 3903 Instructions (2025)
Disclaimer: Always verify details with the current year’s Federal or State Department of Revenue Forms and Instructions. For complex situations, consult a tax professional or attorney.