Corporate Moving As A Tax Write Off

The moving tax deduction was eliminated for most taxpayers by the Tax Cuts and Jobs Act of 2017. If someone told you that your corporate relocation is tax-deductible, they're either talking about a military move or they're working from outdated information. This page covers who still qualifies, what employers can deduct, how reimbursement works, and what active-duty service members can claim. Safebound Moving & Storage (USDOT 2900155) has completed 35,000+ moves with a 4.9-star rating from 2,401 Google reviews. Get a free quote or call 561-510-7191.

Who Can Still Deduct Moving Expenses

As of the 2018 tax year, only active-duty members of the Armed Forces who move due to a military order for a permanent change of station can deduct moving expenses on their federal tax return. This exemption uses IRS Form 3903. No other taxpayer qualifies for the personal moving expense deduction through 2025, when the provision is scheduled for congressional review.

Before 2018, any taxpayer who moved for a new job at least 50 miles farther from their old home could deduct moving costs. That rule no longer applies. If you are moving for a corporate relocation and you are not active-duty military, your moving expenses are not deductible on your personal return.

How Employer Reimbursement Works

Many corporations still pay for employee relocations. The tax treatment depends on how the reimbursement is structured.

Direct payment by the employer. When the company pays the moving company directly, the amount is added to the employee's W-2 as taxable income. The employee pays income tax and FICA on the reimbursement. There is no deduction to offset it.

Lump-sum relocation allowance. Some employers provide a flat amount for the employee to arrange their own move. This is also reported as taxable income on the W-2. The employee cannot deduct the moving costs against the allowance.

Gross-up provision. Some employers "gross up" the reimbursement to cover the tax liability. For example, if the move costs $5,000 and the employee's marginal tax rate is 30%, the employer pays $7,150 so the after-tax amount covers the actual cost. Not all employers offer this. Ask during relocation negotiations.

What Employers Can Deduct as a Business Expense

Corporations can deduct employee relocation costs as a business expense under IRS rules for ordinary and necessary business expenses. The deduction applies to the company's tax return, not the employee's. Deductible costs include:

Transportation of household goods. Travel expenses to the new location. Temporary housing (typically 30 to 60 days). Home sale assistance. Lease-breaking fees at the employee's current residence.

The employer deducts these as business operating expenses. The employee receives them as taxable compensation. Both sides report the amounts, and the net tax impact depends on the company's structure and the employee's bracket.

Military Moving Expense Deduction

Active-duty military members can deduct unreimbursed moving expenses using Form 3903. Qualifying expenses include the cost of moving household goods, travel to the new duty station, and lodging during travel. The move must be related to a permanent change of station order.

The deduction does not require itemizing. It reduces adjusted gross income directly. Military members who receive a Dislocation Allowance or other reimbursement through DFAS can only deduct the unreimbursed portion of their moving costs.

Moving Costs to Track for Reimbursement

Even though most individuals can't deduct moving expenses, tracking costs matters if your employer reimburses relocations. Keep receipts and documentation for:

Moving company charges. Safebound's local rates start at $135 per hour for a 2-mover crew with a $540 minimum.

Crew Size	Hourly Rate	Minimum
2 movers	$135/hr	$540
3 movers	$180/hr	$720
4 movers	$225/hr	$900

Every local job includes 3 hours of labor plus 1 travel hour. Long-distance moves are priced by shipment size and distance. Also track packing materials, storage fees, and travel expenses between the old and new home. Request a free quote for your corporate relocation.

Frequently Asked Questions

Can I deduct moving expenses on my taxes?

Only if you are an active-duty member of the Armed Forces moving due to a permanent change of station order. The Tax Cuts and Jobs Act of 2017 suspended the moving expense deduction for all other taxpayers through at least 2025. If you are relocating for a civilian job, your moving expenses are not deductible on your personal federal tax return.

Are employer-paid moving expenses taxable?

Yes. Moving expense reimbursements from an employer are reported as taxable income on the employee's W-2. The employee pays income tax and FICA on the amount. Some employers offer a gross-up provision that covers the tax liability so the employee receives the full moving cost after taxes. Ask your employer about their reimbursement structure during relocation negotiations.

What is a reasonable price for a local move?

Safebound charges $135 per hour for a 2-mover crew, $180 per hour for a 3-mover crew, and $225 per hour for a 4-mover crew for local moves in South Florida. Every job includes a 3-hour labor minimum plus 1 travel hour, making the minimums $540, $720, and $900. Most 2 to 3 bedroom homes fit the 3-mover crew. Call 561-510-7191 for a quote.

What moving expenses can a company deduct?

Corporations can deduct employee relocation costs as ordinary business expenses. This includes household goods transportation, employee travel, temporary housing, home sale assistance, and lease-breaking fees. The deduction appears on the company's business tax return, not the employee's personal return. The employee reports the reimbursement as taxable W-2 income.

How does the military moving deduction work?

Active-duty military members file IRS Form 3903 to deduct unreimbursed moving expenses from a permanent change of station move. The deduction reduces adjusted gross income directly and does not require itemizing. Qualifying expenses include household goods transport, travel, and lodging. Any portion reimbursed by DFAS cannot be deducted.

Will the moving expense deduction come back?

The suspension of the moving expense deduction for non-military taxpayers is scheduled through 2025 under the Tax Cuts and Jobs Act. Congress may extend, modify, or let the suspension expire during the next tax reform cycle. Check IRS.gov or consult a tax professional for the current status of the deduction for your tax year.

Is it worth paying for a moving company for a corporate move?

For employer-reimbursed relocations, professional movers provide documentation that satisfies corporate accounting requirements: written quotes, itemized invoices, and inventory sheets. Safebound provides all documentation electronically. Even when the reimbursement is taxable, the time savings and damage protection from a professional crew make it the standard choice for corporate relocations.

What should I negotiate in a relocation package?

Ask for a gross-up provision so the reimbursement covers the tax liability. Request direct payment to the moving company rather than a lump sum. Negotiate temporary housing for 30 to 60 days if the new home is not ready. Ask about home sale assistance if you own property. Get every term in writing before accepting the offer. These details significantly affect your out-of-pocket cost.

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