Deduction for Moving Expenses No Longer Allowed Under New Tax Law

How 2017 tax legislation affects your taxes when moving to a different home in 2018 or later.

** LEGAL UPDATE **

In the past, if you had to move to a new location because of your job, your moving expenses (such as transport and travel costs) were deductible from your income taxes, provided they met certain conditions. You had to pass the IRS distance and time tests, and were eligible for this deduction if your move was work-related--that is, you found a new job, your current job required the move, or you were starting your first job and needed to move in order to take it. (See Deducting Moving Expenses for details.)

However, the tax overhaul that was passed by Congress in late 2017 and signed by Donald Trump changes this. U.S. taxpayers will no longer be able to deduct moving expenses, though their standard deduction will be higher than before.

Note, however, that the moving expense deduction was not among the deductions that people had to itemize--it was a separate line item adjustment on the 1040 income tax return. So its a particularly significant loss for people who continue to itemize their deductions.

The upshot is that if you have a job-related move in 2018 and beyond, it will be irrelevant for income tax purposes.

Effective Date: January 1, 2018