Move of 40 km or more – Reimbursement

Move of 40 km or more – Reimbursement

Did you move to be closer to your place of study, work, or to run a business? You may be able to deduct certain moving expenses in this context.

When and How to Claim a Reimbursement

When you move, your tax obligations may vary, but it is when filing your income tax return that you can claim a reimbursement for your move. The Canada Revenue Agency (CRA) and Revenu Québec allow you to deduct certain eligible expenses from your income.

🛑 However, if your employer provided you with an allowance to cover eligible moving expenses, you must include that amount in your income or deduct it from your moving expenses.

📄 Revenu Québec Form
📄 CRA Form

Eligibility Criteria

To deduct moving expenses, you must meet two conditions:

You moved to pursue post-secondary studies, to work, or to operate a business.

You moved at least 40 kilometres closer to your new place of study or work (including seasonal employment).

🧑‍🎓 Full-time students enrolled in a post-secondary program may deduct various eligible expenses from their annual financial assistance and carry forward any unused amounts (if expenses exceed the assistance received) to future years.

🕴️ Eligible workers may also deduct these expenses from their income when filing their tax return and carry forward any unused expenses to future years.

Eligible Moving Expenses

Deductible moving expenses include:

• Hiring movers
• Renting moving trucks or trailers
• Storage of household goods
• Temporary living expenses (accommodation and meals for you and your family while traveling to your new home, up to a maximum of 15 days)
• Meal and vehicle expenses
• Costs of maintaining your former vacant residence (interest, property taxes, insurance premiums, heating and utilities, up to $5,000), provided you made reasonable efforts to sell it
• Lease cancellation fees
• Costs related to selling your former residence (lease termination, advertising, notary or legal fees, real estate broker commission, mortgage penalty)
• Costs related to purchasing a new residence (legal fees, land transfer, etc.)
• Miscellaneous expenses (driver’s licence replacement, utility hook-ups, change of address)

📄 The complete list of eligible expenses is available on the CRA website.

Non-Eligible Expenses

Certain expenses are not eligible, such as:

• Mail forwarding costs
• Job search expenses
• Losses incurred on the sale of your home

Calculation Methods for Reimbursement

The Canada Revenue Agency offers two methods to calculate meal and vehicle expenses: the detailed method and the simplified method.

The detailed method requires keeping all receipts to claim the exact amount, while the simplified method allows you to claim $23 per meal (up to $69 per day, per person) and a set per-kilometre rate based on the province.

Keep in mind that unused amounts (expenses cannot exceed your income) may be carried forward to a future year. Take advantage of it—these are savings that rightfully belong to you.


Source: Centris.ca