Do rental cars costs count as moving expenses? I moved from Alabama to Hawaii and had to rent a car while my owned car was in transit to Hawaii. This was a military move.

[DS30 · Accepted solution]

Yes, you can include the cost of a car rental as part of your moving expenses.

If you have to relocate because of a PCS, nearly any ordinary and necessary moving out-of-pocket expense that is not reimbursed by the government is deductible. This includes storage fees and car rental fees.

If you're a member of the Armed Forces and your move was due to a military order and permanent change of station, you don't have to satisfy the distance or time tests.

Once you have signed into your TurboTax Account (for TurboTax Online sign-in, click Here), select "Take Me To My Return" and type "moving expenses" in the search bar then select "jump to moving expenses". TurboTax will guide you in entering this information

You will claim these moving expenses on Form 3903 and they will not affect your ability to claim a standard deduction.

Alternatively, to enter your moving expenses in TurboTax Online or Desktop, please follow these steps:

1. Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
2. Next click on “Deductions & Credits” ("Personal Income" in TurboTax Home & Business)
3. Next click on "jump to full list" or (I’ll choose what I work on or see all tax breaks)
4. Scroll down the screen until to come to the section “Other Deductions and Credits”
5. Choose "show more", then Moving Expenses and follow the onscreen instructions
6. If you are able to meet the IRS moving expense requirements, you will enter the lodging information on the screen that is titled "Enter your moving expense"

Please refer to these links related to moving expenses: IRS - Moving Expenses and Moving Expense Deduction