Who can claim moving expenses?

If you are employed or self-employed, and moved more than 40 km to a new home, either be employed or carry on business at a new location you can deduct allowable moving

expenses from your employment or self-employment income earned at the new location.  This includes amounts received under the Wage Earner Protection Program.

The rules governing moving costs are:

• The taxpayer pays his or her own expenses

• The expenses were not deducted in the preceding year

• The deduction does not exceed the income earned at the new work location

• There is a one-year carry forward of any expenses (limited by the deduction not exceeding income earned at the new work location)

• All reimbursements and allowances received are included in income

• You must rent or sell your old home, making your new home your place of ordinary residence; and

• You must generally move within Canada (click here for more detail on this topic)

Investment income, Employment Insurance benefits or any other types of income, are not eligible to deduct moving expenses from.

If your employer reimbursed you or gave you an allowance for your eligible moving expenses, you may only claim your expenses if you:

• Include the income amount received by your employer; or

• Reduce your moving expenses by the amount that was refunded to you

Please note that CRA may ask you to provide them with a letter from your employer, saying you were not reimbursed for any of the moving expenses.

Full-time Students are also eligible to claim moving expenses, if you moved to study courses at a University, College or any other educational institution that offers post-secondary level school courses. You can only deduct moving expenses from the part of your scholarships, fellowships, bursaries, and research grants that must be included in your income.

You can also claim moving expenses, at the beginning of each academic period, if you moved 40 kilometers or more for work (outlined in Form TI-M).  This includes summer employment or to run a business. Expenses are only deductible from the income you earn at your new place of work or business.  For co-operative students, you can claim your moving expenses when you move back after a summer break or a work semester, provided you meet the previous requirements.

Please follow the links for more information on Eligible and Ineligible Moving Expenses or Pamphlet P105, Students and Income Tax.

Did you move from Canada?

If you have met all of the conditions and requirements after reading “Can you claim moving expenses?  You are eligible to claim expenses for a move from Canada if:

• You are a full-time student (including a co-operative student), or a factual or deemed resident; and

• You moved from a place you ordinarily reside to live in another home you would ordinarily reside.

If you rent an apartment in another country where you are working temporarily and you keep residential ties in Canada, you cannot claim moving expenses.

Did you move to Canada?

You are eligible to claim expenses, for a move to Canada if you are a full-time student, co-operative student, or a factual or deemed resident, as long as you’ve met all of the conditions and requirements set out above.

Did you move between two locations outside Canada?

If you moved between locations outside Canada and are a factual or deemed resident, you are eligible to claim moving expenses as long as you meet the requirements.

For further advice or assistance with these or any other financial issues, please contact a Millards representative at (519) 759-3511.