Can I claim moving expenses on my taxes? Tax education from Canadian CPA

My clients ask me every year; "If I moved, can I claim my moving expenses on my taxes?"

The answer is: if you meet specific CRA criteria, you may be able to deduct moving expenses on your tax return using Form T1-M, Moving Expenses Deduction. This can help reduce your taxable income and save you money.

Here’s a simple step-by-step guide to claiming moving expenses properly.

Who Can Claim Moving Expenses?

You can deduct eligible moving expenses if you meet both of the following conditions:

✔️ You moved at least 40 km closer to your new work location or school.
✔️ The move was for employment, self-employment, or full-time post-secondary education.

💡 Pro Tip: If your employer reimbursed you for moving costs, you can only claim the portion of expenses that weren’t covered.

Step-by-Step Guide to Claim Moving Expenses on Your Tax Return

Step 1: Download and Complete Form T1-M

• Get the T1-M, Moving Expenses Deduction Form from the CRA website:
  Download T1-M Form

Step 2: Gather Your Receipts for Eligible Expenses

✔️ Transportation & Storage – Moving trucks, professional movers, storage, and insurance.
✔️ Travel Costs – Gas, hotels, and meals for you and your family during the move.
✔️ Temporary Living Expenses – Up to 15 days of meals and accommodations if you had to stay somewhere before settling in your new home.
✔️ Costs of Selling Your Old Home – Real estate commissions, legal fees, and mortgage penalties.
✔️ Costs of Buying Your New Home – Legal fees and land transfer taxes (if applicable).

💡 Keep all receipts and records—the CRA may ask for proof of expenses.

Step 3: Enter the Deduction on Your Tax Return

• After completing Form T1-M, enter the total moving expenses on line 21900 of your T1 General tax return.

Special Rules for Students and Employees

📌 Students: You can only deduct moving expenses against income earned from scholarships, bursaries, or research grants.
📌 Employees: If you moved for work but don’t have enough income to deduct all expenses in one year, you can carry them forward to a future tax year.

Final Thoughts

If you’ve recently moved for work or school, don’t leave money on the table! Filing Form T1-M and keeping good records can help you claim thousands of dollars in eligible deductions.

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For more information, consult www.Canada.ca and if you’re looking for a CPA in Ottawa, please don’t hesitate to reach out.

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This is not legally binding tax advice. This is educational analysis. Say hello if you need help.

hello@taxesmadesimple.ca

WhatsApp - 613.600.4194

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