IRS Form 3903 – Moving Expenses

IRS Form 3903 – Are you a member of the U.S. Armed Forces facing a permanent change of station? If so, you may be eligible to deduct certain moving expenses on your federal tax return using IRS Form 3903. This form helps calculate unreimbursed costs associated with military-ordered relocations. However, due to tax law changes, this deduction is now limited exclusively to active-duty military members. In this SEO-optimized guide, we’ll cover everything you need to know about Form 3903, including eligibility, deductible expenses, and step-by-step filing instructions for tax year 2025 (filed in 2026).

What Is IRS Form 3903?

IRS Form 3903, titled “Moving Expenses,” is a tax document used to compute and claim a deduction for qualified moving costs. It allows eligible taxpayers to reduce their taxable income by subtracting unreimbursed expenses related to a job-related move. Prior to 2018, this deduction was available to a broader range of individuals, such as civilians starting a new job. However, the Tax Cuts and Jobs Act suspended the general moving expense deduction for tax years 2018 through 2025, extending it only to members of the Armed Forces on active duty. This restriction remains in place for 2025 returns, meaning most non-military taxpayers cannot claim moving expenses on their federal taxes.

The form is typically attached to your Form 1040, 1040-SR, or 1040-NR, and the calculated deduction is reported on Schedule 1 (Form 1040), line 14. If your reimbursements exceed your expenses, you may need to report the excess as income.

Who Qualifies for the Moving Expense Deduction?

To use Form 3903, you must meet specific criteria:

  • Active-Duty Military Status: You must be a member of the U.S. Armed Forces on active duty.
  • Permanent Change of Station (PCS): The move must result from a military order for a PCS. This includes relocations from your home to your first post of duty, between permanent posts, or from your last post to your home (or a nearer point in the U.S.) within one year of ending active duty or as allowed under Joint Travel Regulations.
  • Spouses and Dependents: In cases where the service member deserts, is imprisoned, or dies, spouses or dependents may qualify for moves to the member’s place of enlistment, home of record, or a nearer U.S. point.

Civilians, including those in the Intelligence Community unless on active military duty, generally do not qualify. If you’re unsure, consult IRS Publication 3, Armed Forces’ Tax Guide, for more details.

Eligibility Requirements for Claiming Moving Expenses

Beyond basic qualifications, your move must adhere to these rules:

  • Household Members: Expenses must be for you and members of your household who share both your old and new homes as their principal residence. This excludes tenants, employees (like nannies), or non-dependents.
  • Reasonable Expenses: Only unreimbursed, reasonable costs are deductible. Government-provided services or allowances (not exceeding actual expenses) are excluded.
  • Timing: The move should occur close to the start of your new duty station, and expenses must be incurred within the allowable period.
  • Certification: Check the box on Form 3903 to certify you meet the Armed Forces requirements.

For foreign moves (e.g., to a U.S. military base abroad), additional storage deductions may apply. Note that house-hunting trips or temporary lodging before the official move do not qualify.

What Moving Expenses Can You Deduct on Form 3903?

Eligible expenses are those not reimbursed by the government and directly related to the PCS. Here’s a breakdown:

Deductible Expenses

  • Household Goods and Personal Effects: Costs for packing, crating, transporting, in-transit storage (up to 30 consecutive days), and insurance.
  • Travel and Lodging: Transportation and lodging en route to your new home (one trip per person). Meals are not included.
  • Vehicle Expenses: If using your car, deduct actual costs (gas, oil) or the 2025 standard mileage rate of 21 cents per mile, plus parking fees and tolls.
  • Foreign Move Extras: For moves outside the U.S., include storage while at the new workplace and costs to move items to/from storage.

Total qualified expenses can include shipping pets or vehicles if part of household goods.

Non-Deductible Expenses

Certain costs are explicitly excluded:

  • Meals during travel.
  • House-hunting or return trips to your old residence.
  • Home buying/selling costs (e.g., closing fees, real estate taxes).
  • Lease-breaking penalties or security deposits.
  • General vehicle maintenance, insurance, or depreciation.
  • Lavish lodging or unnecessary side trips.
  • Storage beyond in-transit periods (except for foreign moves).
  • Expenses reimbursed by the government, such as temporary lodging allowances or dislocation allowances.

Always subtract any reimbursements from your total expenses to avoid double-dipping.

How to Fill Out IRS Form 3903 Step-by-Step?

Filling out Form 3903 is straightforward if you have your records ready. Gather receipts, mileage logs, and your Form W-2 (which may include reimbursements in box 12 with code P).

  1. Check the Eligibility Box: Certify that you’re an active-duty military member moving due to a PCS.
  2. Line 1 – Moving Household Goods: Enter unreimbursed costs for transporting and storing goods (exclude government-paid amounts).
  3. Line 2 – Travel Expenses: Input transportation and lodging costs (use actual expenses or standard mileage rate).
  4. Line 3 – Total Expenses: Add Lines 1 and 2.
  5. Line 4 – Reimbursements: Enter government allowances for the expenses on Lines 1 and 2 (exclude non-taxable items like temporary lodging).
  6. Line 5 – Deduction or Income: Subtract Line 4 from Line 3. If positive, this is your deduction (report on Schedule 1, line 14). If negative, report the excess as income on Form 1040, line 1h.

For multiple moves, use separate forms but treat relocations to different homes as a single move. If only claiming storage fees during a U.S. absence (government-paid and included in W-2), skip Form 3903 and report directly on Schedule 1.

Where to Report and File Form 3903?

Attach Form 3903 to your federal tax return (Form 1040 series). The deduction reduces your adjusted gross income, potentially lowering your tax bracket. E-file if possible for faster processing. Keep records for at least three years in case of an audit.

If you’re filing Form 2555 (Foreign Earned Income), allocate expenses accordingly—see IRS Publication 54 for guidance.

Important Reminders for Military Moving Expenses

  • Taxable Reimbursements: If allowances exceed expenses, they may be included in your W-2 wages.
  • State Taxes: Some states still allow moving deductions for non-military—check your state’s rules.
  • Estimated Taxes: Consider adjusting withholdings if expecting a large deduction (use IRS Publication 505).
  • PCS Resources: Military OneSource offers tools for calculating PCS costs.
  • Updates: The standard mileage rate for 2025 is 21 cents per mile—a decrease from prior years.

Download IRS Form 3903

You can download the latest version of Form 3903 directly from the IRS website: https://www.irs.gov/pub/irs-pdf/f3903.pdf. For instructions, visit https://www.irs.gov/pub/irs-pdf/i3903.pdf.

Claiming moving expenses can provide significant tax relief for military families. If your situation is complex, consult a tax professional or use software like TurboTax for guidance. Stay updated on IRS changes to maximize your deductions.