A little-known fact in Canada is that many moving expenses are tax deductible and can boost your return – so keep all your moving related receipts! Here is a list of moving-related expenses that you can submit to CRA at tax time to help recoup some of the costs associated with your move.
What Moving Expenses Can I Claim?
- Traveling expenses, including car expenses for you and your family
- Meals and accommodations on the way to the new residence
- To claim travel and meal expenses, you must choose to claim via the detailed or simplified method.
|Detailed Method: You must keep all receipts in order to claim the actual, full amount you spent.
Simplified Method: Meals can be claimed at a flat rate of $17/meal to a maximum of $51/day. Vehicle expenses can claim 53 cents/kilometre. While you do not need to keep detailed receipts for your expenses, the CRA may still request for documentation to support your claim.
- Costs of moving your stuff (moving van, storage, insurance, box rental etc.)
- Costs of temporary accommodation and meals for your family for up to 15 days
- Costs of cancelling your lease on the old residence (maximum of $5,000)
- Incidental costs related to the move (i.e. fees for utility disconnection and hook up, mail forwarding, changing your address on documents like a passport or driver’s license)
How Do I Claim My Moving Expenses?
To claim any of these moving expenses, you will have to complete form T1-M, “Moving Expenses Deduction.” On this form, you report need to report:
- where you moved from and to
- why you moved
- specific details and dollar amounts of your moving costs
You don’t have to submit any supporting documentation when you file, but be sure to keep it in case you are audited or if the CRA has any questions.
What Else Do I Need To Know?
The eligible moving expenses may be deducted only from your employment or self-employment income earned at the new location. If your current year’s eligible moving expenses exceeded your current year’s income at the new location, the excess can be carried forward for deduction on the next year’s tax return. And, of course, if your moving expenses were paid by your employer, you cannot deduct them. If however, your employee gave you a moving allowance, you must include this in your income and then make sure you claim all eligible moving expenses.
For additional details, reference the Canada Revenue Agency’s website, here.