If you move to a location outside the U.S., you can deduct the same two categories of expenses indicated above, plus:
the reasonable expenses of moving your household good and personal effects to and from storage, and
the reasonable expenses of storing your household goods and personal effects while you are working outside the U.S.
But, if you take advantage of the foreign earned income exclusion, you cannot deduct moving expenses that relate to the income you are excluding.
Nondeductible Moving Expenses
The following expenses are specifically identified by the IRS as nondeductible:
Pre-move househunting expenses
Temporary living expenses
Meal expenses
Storage charges except those incurred in transit and for foreign moves
Any part of the purchase price of your new home
Home improvements to help sell your home
Expenses of buying or selling a home
Loss on the sale of your home
Mortgage penalties
Real estate taxes
Expenses of getting or breaking a lease
Security deposits
Refitting of carpets and draperies
Car tags
Driver’s license
Losses from disposing of memberships in clubs
If your employer reimbursed you for any of these expenses, the reimbursement should be included in your taxable compensation.
Filing requirements
In order to claim the moving expense deduction, you will need to file Form 3903 – Moving Expenses. Attach it to your 1040 if you file by paper. Form 3903 is available in the free e-filing services on the IRS website.