Can you claim moving expenses?
Answer
You are eligible to claim a deduction for moving expenses.
Complete Form T1-M, Moving Expenses Deduction, to calculate the moving expenses deduction that you are eligible to claim on line 21900 of your return.
Read Eligible moving expenses and Ineligible moving expenses.
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.
Notes
If your net moving expenses 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 and report on your return in a future year.
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 Form T1-M 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 prior year, you cannot claim the expenses paid in the current year on your prior year return. This is the case even if you earned employment or self-employment income at the new work location in the prior year.
You said that:
- You are employed or self-employed who moved from one place in Canada to another place in Canada
- You moved to a new home to work or to run a business out of a new location
- You earned employment income or self-employment income at your new work location
- Your new home is at least 40 kilometres closer (by the shortest public route) to your new work location
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