Moving can be a pain. You must cram your whole life into boxes and, sometimes, make a trip to a faraway destination. Usually, there’s lots of driving, heavy lifting, and stress involved in the process. But when it’s all said and done you get to enjoy being in your beautiful new home. On top of that, when buying a house with a VA home loan, there are some great tax benefits that military families can enjoy. Below, we’ve provided a complete list of deductible moving expenses for active-duty military.
When Can I Deduct Moving Expenses?
It used to be the case that anyone, regardless of their occupation, could deduct moving expenses so long as they met certain requirements. This is no longer the case. Since 2018, tax laws have restricted moving expense deductions to military only. This means that you can only deduct moving expenses if you are an active member of the Armed Forces.
Active military members can deduct moving expenses in the case of a Permanent Change of Station. This means moving from:
- Your home to your first post of active duty
- One permanent post of duty to another
- Your last post of duty to your home or a nearer point in the United States. The move must occur within either:
- One year of ending your active duty
- The period allowed under the Joint Federal Travel Regulations
Spouses and dependents of active, imprisoned, or deceased military members may also be able to deduct moving expenses, provided certain requirements are met.
List of Deductible Moving Expenses
When buying a house with a VA home loan, active military members can deduct most expenses that are reasonable for the circumstances of their move. The one major exception includes expenses for meals. However, there are many other eligible expenses including:
- Household goods
- Personal effects
- Storage expenses between your move (for up to 30 days)
- Driving expenses
- Lodging expenses for moving
- Cost of moving trailer
- Packing expenses
- Moving insurance
- Moving crates
- Storage expenses for foreign moves to another country
Tax Forms for Reporting Moving Expenses
You can calculate your moving expenses on Form 3903, Moving Expenses, and deduct as an adjustment to income on Form 1040, U.S. Individual Income Tax Return or Form 1040-SR, U.S. Tax Return for Seniors.
Apply for a VA Home Loan Today
Are you a military member or Veteran who’s considering buying a home? Let us help! Call Mortgage Solutions Financial today to apply for a VA home loan.