IRS Instruction 3903 – IRS Forms, Instructions, Pubs 2026 – Moving can be a stressful and costly experience, whether it’s for a new job, military orders, or other life changes. If you’re in the Armed Forces or, starting in 2026, certain members of the U.S. intelligence community, you may be eligible to deduct qualified moving expenses using IRS Form 3903. This form helps calculate your deduction for moves related to a permanent change of station or similar qualifying relocations. In this SEO-optimized guide, we’ll break down the instructions for Form 3903, who qualifies, what expenses you can deduct, and how to file—based on the latest IRS guidelines as of 2026.
Keep in mind that the moving expenses deduction was suspended for most taxpayers from 2018 through 2025 under the Tax Cuts and Jobs Act. However, recent legislation, including the One Big Beautiful Bill signed in July 2025, made this suspension permanent for non-military civilians while expanding eligibility to include U.S. intelligence community members (such as those in the CIA or NSA) starting with the 2026 tax year. For tax year 2025 (filed in 2026), the deduction remains limited primarily to active-duty Armed Forces members.
What Is IRS Form 3903 and Its Purpose?
IRS Form 3903, titled “Moving Expenses,” is used to figure out your deductible moving costs when the relocation is tied to starting work at a new principal place of work. Specifically, it’s designed for qualifying moves due to military orders or, as of 2026, intelligence community appointments. The form allows you to claim an above-the-line deduction, meaning it reduces your adjusted gross income (AGI) without needing to itemize.
The purpose of Form 3903 is to calculate unreimbursed reasonable expenses for moving household goods, personal effects, and travel from your old home to your new one. A permanent change of station includes moves from your home to your first post of duty, between permanent posts, or from your last post to home or a nearer point in the United States within one year of ending active duty. If you’re filing for a foreign move (outside the U.S. or its territories), additional storage costs may qualify.
For tax years after 2017, this deduction is no longer available to most civilians, but exceptions apply for Armed Forces members and now intelligence personnel. Always check IRS.gov for the most current form and instructions, as updates can occur.
Who Qualifies for the Moving Expenses Deduction?
Eligibility is narrow under current rules:
- Armed Forces Members: You must be on active duty and moving due to a military order for a permanent change of station. This includes spouses and dependents if the member deserts, is imprisoned, or dies—the move can be to the member’s place of enlistment, home of record, or a nearer U.S. point.
- U.S. Intelligence Community (Starting 2026): Employees or appointees in agencies like the CIA, NSA, or similar can deduct moving expenses if the relocation is related to their role, similar to military permanent changes.
- Household Members: Deductions cover moves for you, your spouse, dependents, or other household members who share both your old and new main home (excluding tenants or non-dependent employees).
If you’re a U.S. citizen or resident alien moving to a workplace outside the U.S., you may still qualify under these categories. Non-military civilians generally cannot claim this deduction, and employer reimbursements for moves are now fully taxable as wages.
Types of Moves That Qualify for Deduction
Not every relocation counts—only those tied to qualifying work changes:
- U.S. Moves: Within the United States or its territories, including from home to first duty post or between posts.
- Foreign Moves: From the U.S. to a foreign country, between foreign countries, or to a U.S. military base abroad (considered foreign). These allow extra deductions for storage while the new location is your principal workplace outside the U.S.
Moves must occur within one year of ending active duty or per Joint Travel Regulations. Multiple moves to separate locations are treated as a single move.
Deductible Moving Expenses: What You Can Claim
You can deduct reasonable, unreimbursed expenses, including:
- Household Goods and Personal Effects: Packing, crating, hauling, in-transit storage (up to 30 consecutive days for U.S. moves), and insurance.
- Travel Expenses: Transportation and lodging (but not meals) for one trip per household member from old to new home. For cars, use actual costs (gas, oil) or the 2025 standard mileage rate of 21 cents per mile, plus parking and tolls.
- Foreign Move Extras: Moving goods to/from storage and ongoing storage costs while at the new foreign workplace.
Do not include government-provided services or reimbursed amounts in your calculations.
Non-Deductible Moving Expenses
Certain costs are explicitly excluded:
- Home buying/selling expenses (closing costs, points).
- Lease breaking/entering fees.
- Home improvements to sell your old home.
- Car tags, driver’s licenses, or general vehicle maintenance/insurance.
- Meals, side trips, or lavish lodging.
- Security deposits, club memberships, or real estate taxes.
- Storage beyond allowed periods (except foreign moves).
How to Figure Your Moving Expenses Deduction?
Use Form 3903 to calculate:
- Line 1: Enter costs for moving/storing household goods (exclude government services/reimbursements).
- Line 2: Enter travel/lodging costs (one trip per person; use mileage rate if applicable).
- Line 3: Total of Lines 1 and 2.
- Line 4: Enter government reimbursements/allowances (exclude certain non-taxable items like dislocation allowances, coded “P” on W-2 Box 12).
- Line 5: If Line 3 > Line 4, the difference is your deduction (report on Schedule 1 (Form 1040), Line 14). If Line 3 ≤ Line 4, no deduction; report any excess reimbursements as income if required.
Check the certification box to confirm you meet requirements. Use separate forms for multiple moves. If filing Form 2555 for foreign earned income exclusion, allocate non-deductible portions per Pub. 54.
Handling Reimbursements and Allowances
Government reimbursements exceeding expenses may be taxable (included on W-2 or reported on Form 1040, Line 1h). Non-taxable items include moving services value, dislocation allowances, temporary lodging, and move-in housing allowances. If reimbursements are less than expenses, deduct the difference; they aren’t income. Factor taxable reimbursements into estimated taxes using Pub. 505.
For civilians, all employer relocation payments are taxable wages on W-2.
When and How to File Form 3903?
Attach Form 3903 to your Form 1040, 1040-SR, or 1040-NR when filing your tax return. Deduct expenses in the year paid or incurred. For storage fees only (if government-paid and included in W-2 wages), report directly on Schedule 1, Line 14, without Form 3903.
The standard mileage rate for 2025 is 21 cents per mile—check IRS.gov for 2026 updates. If you’re unsure about eligibility, consult a tax professional or visit IRS.gov/Form3903 for the latest revisions (last updated November 21, 2025, for the instructions page).
Final Thoughts on Moving Expenses in 2026
While the moving expenses deduction remains limited, it’s a valuable benefit for qualifying military and intelligence personnel. By understanding IRS Instruction 3903, you can maximize your tax savings on eligible relocations. For state taxes, check your local rules—some states may allow deductions even if federal doesn’t. Always use official IRS sources and consider professional advice for complex situations.
For more details, download the latest Form 3903 instructions from IRS.gov or consult Publications 521 (Moving Expenses) and 505 (Tax Withholding and Estimated Tax). Stay updated on any legislative changes that could affect 2026 filings.