Can You Claim Moving Expenses?
February 19, 2020
Let’s start with YES! Moving expenses can be claimed for those who qualify. Read below to see if you qualify for deductions.
Here is some information from Government of Canada website:
Generally, you can claim moving expenses you paid in the year if both of the following apply:
- you moved to work or to run a business, or you moved to study courses as a full-time student enrolled in a post-secondary program at a university, a college, or another educational institution
- you moved at least 40 kilometres closer to your new work or school
Employee or self-employed
If you have moved and established a new home to be employed or run a business at a new location, you can deduct eligible moving expenses from the employment or self-employment income you earned at your new location.
If you are an employee or a self-employed individual, select one of the following:
- You moved within Canada.
- You moved from outside Canada to a new work location in Canada.
- You moved from Canada to a new work location outside Canada.
- You moved between 2 locations outside Canada.
If you move from Canada, to Canada, or between 2 locations outside Canada, you must be a deemed or factual resident of Canada and the move has to be from one place where you ordinarily resided to live in another place where you will ordinarily reside.
If you moved to take courses as a student in full-time attendance enrolled in a post-secondary program at a university, college or other educational institution, you may qualify to deduct eligible moving expenses from the part of your scholarships, fellowships, bursaries, certain prizes, and research grants that is required to be included in your income.
- You are a student who moved to attend a post-secondary educational institution (either in or out of Canada).
Complete Form T1-M, Moving Expenses Deduction, to calculate the moving expense deduction that you are eligible to claim on line 21900 of your return.
If you received a reimbursement or an allowance from your employer for your eligible moving expenses, you can only claim your moving expenses if you include the amount you received in your income or if you reduce your moving expenses by the amount received.
If your net moving expenses that you paid in the year of the move are more than the net eligible income earned at the new work location in that same year, you can carry forward and deduct the unused part of those expenses from your employment or self-employment income earned at the new work location in the following years.
If your moving expenses were paid in a year after the year of your move, you can claim them on your return for the year you paid them against employment or self-employment income earned at the new work location.
This may apply if your old home did not sell until after the year of your move. If this is the case, the CRA may ask you to submit this form with the receipts and explain the delay in selling your home. However, you cannot carry back moving expenses to a prior year.
For example, if you paid moving expenses in the current year for a move that occurred in a previous year, you cannot claim the expenses paid in the current year on your prior year return, even if you earned employment income, self-employment income, or received a taxable amount of scholarships, fellowships, bursaries, certain prizes, and research grants at the new location in the prior year.
You said that:
- you are an employee or a self-employed individual who moved from outside Canada to a new work location in Canada, from Canada to a new work location outside Canada, or between 2 locations outside Canada
- you are a deemed or factual resident of Canada, and the move was from one place where you ordinarily resided to live in another place where you will ordinarily reside
- you moved during the year and established a new home to start a new job or a business
- you earned employment income or self-employed income at your new location
- your new home that you established is at least 40 kilometers closer to the new place of work or business than your previous home was
Source: Government of Canada
We hope this was helpful! For more information, visit Moving Expenses on the Government of Canada website.