Moving Expenses

You can claim eligible moving expenses if:

  • you moved and established a new home to work or run a business at a new location; or
  • you moved to be a student in full-time attendance in a post-secondary program at a university, college or other educational institution.

To qualify, your new home must be at least 40 kilometres (by the shortest usual public route) closer to your new work or school.

Employee or self-employed

If you have moved and established a new home to be employed or run a business at a new location, you can deduct eligible moving expenses from the employment or self-employment income you earned at your new location.

If you are an employee or a self-employed individual, select one of the following:

Note

If you move from Canada, to Canada, or between two locations outside Canada, you must be a deemed or factual resident of Canada and the move has to be from one place where you ordinarily resided to live in another place where you will ordinarily reside.

Full-time student

If you moved to take courses as a student in full-time attendance enrolled in a post-secondary program at a university, college or other educational institution, you may qualify to deduct eligible moving expenses from the part of your scholarships, fellowships, bursaries, certain prizes, and research grants that is required to be included in your income.

Note

If you moved out of Canada to attend a post-secondary institution, you must be a deemed or factual resident of Canada.

If you have moved and established a new home to work or run a business at a new location, you can deduct eligible moving expenses from the employment or self-employment income you earned at your new work location, including amounts you received under the Wage Earner Protection Program for your employment at the new work location.

To qualify, your new home must be at least 40 kilometres closer (by the shortest usual public route) to your new work. You must establish your new home as the place where you ordinarily reside. For example, you have established a new home if you have sold or rented (or advertised for sale or rent) your old home. Generally, your move must be from one place in Canada to another place in Canada.

You cannot deduct your moving expenses from any other type of income, such as investment income or employment insurance benefits, even if you received this income at the new location.

If you received a reimbursement or an allowance 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.

Note

We may ask you to provide a letter from your employer stating that you were not reimbursed for the moving expenses you are claiming.

Unused moving expenses available to carry forward to a future year

If your net moving expenses (line 21 of Form T1-M, Moving Expenses Deduction) paid in the year of the move are more than the net eligible income (line 22 of Form T1-M) 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.

Expenses you paid in a year after you moved

If your eligible 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, we may ask you to submit Form T1-M with the receipts and explain the delay in selling your home.

Note

You cannot carry back moving expenses to a prior year. For example, if you paid moving expenses in 2017 for a move that occurred in 2016, you cannot claim the expenses paid in 2017 on your 2016 return, even if you earned employment or self-employment income at the new location in 2016.

Your net eligible income

If you are an employee, your net eligible income is equal to the amounts reported on your T4 and/or T4A slips relating to the new work location and that are included on lines 101 and/or 104minus any amount relating to the new work location claimed on lines 207212229231, and 232 of your return.

If you are self-employed, your net eligible income is generally equal to the net amounts earned at the new work location that are included on lines 135 to 143minus any amounts claimed on lines 212 and 222 of your return.

You can claim eligible moving expenses if you moved to be a student in full-time attendance in a post-secondary program at a university, college or other educational institution. However, you can only deduct these expenses from the parts of your scholarships, fellowships, bursaries, study grants, and artists’ project grants (awards) that are required to be included in your income.

You are considered to be a full-time student if you regularly attend a college, university, or other educational institution in a program at a post-secondary school level (whether in Canada or not); and during a particular semester, you are taking at least 60% of the usual course load for the program in which you are enrolled. For more information, see Income Tax Folio S1‑F3‑C4, Moving Expenses.

To qualify, your new home must be at least 40 kilometres (by the shortest usual public route) closer to your new work or school. You must establish your new home as the place where you ordinarily reside. For example, you have established a new home if you have sold or rented (or advertised for sale or rent) your old home. Generally, your move must be from one place in Canada to another place in Canada.

If you moved to work, including summer employment, or to run a business, you can also claim moving expenses. However, you can only deduct these expenses from the employment or self-employment incomeyou earned at the new work location.

You can claim moving expenses you incur at the beginning of each academic period as long as you meet the 40-kilometre requirement and you have earned income at your new work location.

For co-operative students moving back after a summer break or a work semester, you can also claim your moving expenses as long as you meet the previously-stated requirements.

Note

Complete a separate Form T1-M for each move and enter the total of all amounts from line 23 on line 219 of your tax return.

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.

Unused moving expenses available to carry forward to a future year

If your net moving expenses (line 21 of Form T1-M, Moving Expenses Deduction) that you paid in the year of the move are more than the scholarships, fellowships, bursaries, certain prizes, and research grants income you report for the year (line 22 of Form T1-M), you can carry forward and deduct the unused part of those expenses from the same type of income you receive and report on your return for the following years.

Expenses you paid in a year after you moved

If your eligible 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. However, you can only deduct these expenses from the part of your scholarships, fellowships, bursaries, certain prizes, and research grants that is required to be included in your income.

Note

You cannot carry back moving expenses to a previous year. For example, if you paid moving expenses in 2017 for a move that occurred in 2016, you cannot claim the expenses paid in 2017 on your 2016 return, even if you earned income at the new location in 2016.

You must first determine if you qualify to deduct moving expenses, either as an individual who is employed or self-employed or as a full-time student.

If you qualify, you can claim reasonable amounts that you paid for moving yourself, your family, and your household items. Not all members of your household have to travel together or at the same time.

Eligible moving expenses

Transportation and storage costs (such as packing, hauling, movers, in-transit storage, and insurance) for household items, including boats and trailers.

Travel expenses, including vehicle expenses, meals, and accommodation, to move you and your household members to your new home. You can choose to claim vehicle and/or meal expenses using the detailed or simplified method.

Temporary living expenses for up to a maximum of 15 days for meals and temporary lodging near the old and the new home for you and your household members. You can choose to claim meal expenses using the detailed or simplified method. If you choose the simplified method, although you do not have to submit detailed receipts for actual expenses, we may still ask you to provide documents showing how long you stayed at the temporary lodging.

Cost of cancelling the lease for your old home, except any rental payment for the period during which you occupied the residence. However, you cannot claim rental payments for any period before the cancellation of your lease, whether or not you occupied the home during this period.

Incidental costs related to your move which include the following:

  • changing your address on legal documents;
  • replacing driving licences and non-commercial vehicle permits (not including insurance); and
  • utility hook-ups and disconnections.

Cost to maintain your old home when vacant (maximum of $5,000) after you moved, and during a period when reasonable efforts were made to sell the home. It includes the following:

  • interest;
  • property taxes;
  • insurance premiums; and
  • cost of heating and utilities expenses.

Note

The costs must have been incurred when your old home was not ordinarily occupied by you or any other person who ordinarily resided with you at the old home just before the move. You cannot deduct these costs during a period when the old home was rented.

Cost of selling your old home, including advertising, notary or legal fees, real estate commission, and mortgage penalty when the mortgage is paid off before maturity.

Cost of buying your new home if you or your spouse or common-law partner sold your old home because of your move.

Note

It includes legal or notary fees that you paid for the purchase of your new home, as well as any taxes paid (other than GST/HST) for the transfer or registration of title to the new home.

Calculation methods

Detailed Method

Meal expenses
If you choose to use the detailed method to calculate your meal expenses, you must keep all your receipts and claim the actual amount that you spent.

Vehicle expenses
If you choose to use the detailed method to calculate your vehicle expenses, you must keep all receipts and records for the vehicle expenses. Claim the actual amount that you spent for your moving expenses during the tax year.

Simplified Method

Meal expenses
If you choose to use the simplified method to calculate your meal expenses, you may claim a flat rate per person. Although you do not need to keep detailed receipts for actual expenses, we may still ask you to provide some documentation to support your claim.

Vehicle expenses
If you choose to use the simplified method to calculate the amount to claim for vehicle expenses, multiply the number of kilometres by the cents/km rate for the province or territory where the travel began. We may still ask you to provide some documentation to support your claim. You must keep track of the number of kilometres driven during the tax year for the trips related to your moving expenses.

Keep all your receipts and documents supporting your claim.

Ineligible moving expenses include:

  • expenses for work done to make your old home more saleable;
  • any loss from the sale of your home;
  • travel expenses for house-hunting trips before you move;
  • travel expenses for job hunting in another city;
  • the value of items movers refused to take, such as plants, frozen food, ammunition, paint, and cleaning products;
  • expenses to clean or repair a rented home to meet the landlord’s standards;
  • expenses to replace personal-use items such as toolsheds, firewood, drapes, and carpets;
  • mail-forwarding costs (such as with Canada Post);
  • costs of transformers or adaptors for household appliances;
  • costs incurred in the sale of your old home if you delayed selling for investment purposes or until the real estate market improved; and
  • mortgage default insurance.

Generally, you cannot deduct the cost of moving a mobile home. However, if you have personal items in a mobile home when it is moved, you can deduct the cost of moving the home as long as it is not more than the estimated cost to move those personal items separately.

Situations where your moving expenses are not allowable:

  • your new home is not at least 40 kilometers (by the shortest usual public route) closer to your new work or school;
  • expenses for which you were reimbursed by your employer and that are not included in your income; and
  • expenses for which you do not have the required supporting documentation.

Generally, your move must be from one place in Canada to another place in Canada.

Did you move to or from Canada?

If you meet all conditions and requirements, you can claim eligible expenses for a move from Canada if:

  • you are a full-time student (including a co-operative student), or a factual or deemed resident of Canada; and
  • you moved from the place where you ordinarily resided to live in another place where you ordinarily reside.

You cannot claim moving expenses if you rent an apartment in another country where you are working temporarily and you maintain residential ties in Canada (for example, your spouse and children remain in your home in Canada) because your home in Canada is where we consider you to ordinarily reside.

Did you move between two locations outside Canada?

If you meet all conditions and requirements, you can claim eligible expenses  for a move between two locations outside Canada if you are a factual or deemed resident of Canada.

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

Complete a separate form for each move.

Enter the amount from line 23 of your Form T1-M on line 219 of your return.

Note

If line 21 is more than line 22, you can carry forward and deduct the unused part and deduct it from the same type of eligible income for the years after you move.

*** This information was taken from the Canada Revenue Agency Website.***