The moving expense deduction is the deduction for qualifying moving costs that remains limited under current federal law.
The moving expense deduction is the deduction for qualifying moving costs under federal rules. In plain language, it is the relocation-cost deduction that exists in a much narrower form under current federal law than many taxpayers remember.
This deduction matters because many taxpayers still assume job-related moving costs are broadly deductible. Under current federal rules, the deduction is generally unavailable to most taxpayers and remains mainly relevant for certain active-duty Armed Forces members moving under military orders.
It also matters because older tax advice about moving expenses can be badly outdated. Readers need the current structural rule more than a generic “moving costs may be deductible” statement.
The moving expense deduction appears during the AGI-stage deduction analysis when a taxpayer has a qualifying move under the current federal rules. Most taxpayers can stop the analysis early because the deduction no longer broadly applies.
A taxpayer moves to start a civilian job in another state and assumes the moving truck and travel costs will be deductible. Under current federal rules, that assumption is usually wrong. A different taxpayer moving under qualifying military orders may still need to test the deduction.
The moving expense deduction is not a general relocation deduction for anyone who moves for work.
It is also different from the Home Office Deduction, which is a business-use-of-home issue rather than a moving-cost rule.