Can you claim moving expenses?

Answer

Questions and answers

You can claim the deduction for moving expenses.

Complete Form T1-M, Moving Expenses Deduction, to calculate the moving expense deduction that you are eligible to claim on line 219 of your return.

Read Expenses you can deduct and Expenses you cannot deduct.

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 refunded.

Note

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 2018 for a move that occurred in 2017, you cannot claim the expenses paid in 2018 on your 2017 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 2017.

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 kilometres closer to the new place of work or business than your previous home was

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