Quick Answer
Active duty military members can deduct unreimbursed moving expenses for PCS moves. Unlike civilians who lost this deduction in 2018, military personnel can still claim expenses like temporary lodging, storage, and travel costs that exceed military allowances. The average military family saves $800-2,400 annually on taxes through this deduction.
Best Answer
Robert Kim, Tax Return Analyst
Best for service members and their families navigating PCS moves and understanding which expenses qualify
What moving expenses can military members deduct?
Active duty military members are among the few taxpayers who can still deduct moving expenses after the Tax Cuts and Jobs Act eliminated this deduction for most Americans in 2018. You can deduct unreimbursed moving expenses related to a permanent change of station (PCS) move ordered by the military.
Example: Staff Sergeant Johnson's PCS move from Fort Bragg to Fort Lewis
Staff Sergeant Johnson receives PCS orders to move his family from North Carolina to Washington. Here's how his moving expense deduction works:
Military allowances received:
Actual moving expenses:
Since his actual expenses ($5,880) are less than his military allowances ($12,900), Staff Sergeant Johnson has no deductible moving expenses. However, if his expenses exceeded the allowances, the difference would be deductible.
When you can claim deductions
You can only deduct moving expenses that exceed what the military reimburses you. Common scenarios where you might have deductible expenses:
What expenses qualify for deduction
Deductible expenses include:
Non-deductible expenses:
Key factors affecting your deduction
What you should do
Start tracking moving expenses immediately when you receive PCS orders. Use IRS Form 3903 to calculate your deduction, and keep all receipts. The military's allowances are generally tax-free, but any excess you pay out-of-pocket may be deductible.
[Use our return scanner to identify missed moving expense deductions →](return-scanner)
Key takeaway: Military members retain the moving expense deduction that most civilians lost in 2018, but you can only deduct unreimbursed costs that exceed military allowances — typically saving $800-2,400 per PCS move.
*Sources: [IRS Publication 3](https://www.irs.gov/pub/irs-pdf/p3.pdf) (Armed Forces' Tax Guide), [IRS Form 3903](https://www.irs.gov/pub/irs-pdf/f3903.pdf)*
Key Takeaway: Military members can deduct unreimbursed moving expenses for PCS moves, but only amounts exceeding military allowances — typically saving $800-2,400 per move.
Comparison of moving expense deduction availability by taxpayer type
| Taxpayer Type | Moving Expense Deduction | Key Requirements | Average Annual Savings |
|---|---|---|---|
| Active Duty Military | Available | PCS orders, unreimbursed costs | $800-2,400 |
| Military Retirees | Available (final move) | Within 1 year of retirement | $1,000-3,000 |
| Civilian Employees | Not Available | Suspended 2018-2025 | $0 |
| Self-Employed | Not Available | Suspended 2018-2025 | $0 |
More Perspectives
Diana Flores, Tax Credits & Amendments Specialist
Best for spouses dealing with career impact and additional costs during PCS moves
Special considerations for military spouses
Military spouses face unique challenges during PCS moves that can create additional deductible expenses. The frequent relocations often disrupt careers and create costs the military doesn't fully cover.
Spouse employment-related moving expenses
If you're a military spouse who needs to find new employment after a PCS move, certain job search expenses may be deductible:
Example: Captain Williams' spouse Sarah is a registered nurse. When they PCS from Germany to San Antonio, Sarah's job search costs include:
While these aren't traditional "moving expenses," they're directly related to the PCS move and may qualify if they exceed any military career assistance allowances.
Dual career challenges
When both spouses work, moving expenses can multiply:
Keep detailed records of these spouse-specific costs, as they often exceed what single military members experience and may push your total expenses above military allowances.
What military spouses should track
Key takeaway: Military spouses often incur additional PCS-related expenses for career transitions and dual-household logistics that may qualify for deduction when they exceed military allowances.
Key Takeaway: Military spouses often incur additional PCS-related expenses for career transitions that may qualify for deduction when they exceed military allowances.
Robert Kim, Tax Return Analyst
Best for service members transitioning to civilian life and making final military moves
Moving expense deduction for military retirees
Retiring military members have one final opportunity to use the military moving expense deduction, but the rules are slightly different for your transition move.
Final PCS vs. retirement move
Your moving expenses are deductible if the move is:
Example: Master Sergeant Rodriguez retires after 22 years and moves from Okinawa to his home state of Texas. The military covers:
His additional out-of-pocket costs:
Special retirement considerations
Home of Record moves: If moving to your official Home of Record, you generally get full military moving benefits. Moves elsewhere may have limited coverage.
Timing matters: The move must occur within one year of retirement. Moves after this period don't qualify for the military moving expense deduction.
Job search expenses: While looking for civilian employment, additional temporary lodging and travel costs may be deductible if they exceed military allowances.
What retirees should know
Key takeaway: Military retirees can deduct unreimbursed costs for their final military-authorized move within one year of retirement, often saving $1,000-3,000 in taxes on transition expenses.
Key Takeaway: Military retirees can deduct unreimbursed costs for their final military-authorized move within one year of retirement, often saving $1,000-3,000 in taxes.
Sources
- IRS Publication 3 — Armed Forces' Tax Guide
- IRS Form 3903 — Moving Expenses
Related Questions
Reviewed by Robert Kim, Tax Return Analyst on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.