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Are moving expenses tax-deductible if I relocated for work?

In Canada, moving expenses may be tax-deductible if you relocated for work, provided you meet certain criteria, such as moving to a location at least 40 kilometers closer to your new workplace. Eligible expenses include transportation, travel, temporary living costs, and expenses related to selling and purchasing homes. To claim, complete Form T1-M and report the deduction on your tax return. Keep receipts, and note that if your expenses exceed your income, you can carry forward the unused portion to future years.

2 min read
Written by Peyton Bieda on August 26, 2024
Canadian Tax Obligations for ResidentsTax Implications for Temporary ResidentsResidency Compliance Guidelines

Are moving expenses tax-deductible if I relocated for work?

Good news! If you've moved for work in Canada, you might be able to deduct your moving expenses on your tax return. But before you get too excited, there are a few things you need to know.

Eligibility Criteria

To claim moving expenses, you need to meet these requirements:

  • You moved to work or run a business in a new location
  • Your new home is at least 40 kilometers closer to your new workplace
  • You're earning income at the new work location

    • What Can You Claim?

    If you meet the criteria, you can deduct a variety of expenses, including:

  • Transportation and storage costs for household items
  • Travel expenses (including meals and lodging) to get to your new home
  • Temporary living expenses for up to 15 days near the new or old home
  • Costs related to selling your old home and purchasing your new one

    • How to Claim

    To claim your moving expenses:

  • Complete Form T1-M, Moving Expenses Deduction
  • Calculate your eligible deduction
  • Report the amount on line 21900 of your tax return

    • Things to Keep in Mind

  • If your employer reimbursed you for moving expenses, you can only claim the portion you paid out of pocket1.
  • You can't claim expenses for things like home repairs or mail forwarding1.
  • Keep all your receipts! The Canada Revenue Agency (CRA) might ask to see them.

    • Carrying Forward Expenses

    If your moving expenses in the year of the move are more than the income you earned at the new location, don't worry! You can carry forward the unused portion and deduct it from your income in future years1.

    Remember, tax rules can be complex, so if you're unsure about anything, it's always a good idea to consult with a tax professional or contact the CRA directly.

    Happy moving, and here's to hoping for a nice tax deduction to soften the blow of relocation costs!

    Citations

    1. https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-21900-moving-expenses/you-claim-moving-expenses-12.html
    2. https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-21900-moving-expenses/you-claim-moving-expenses-6.html