Who can claim moving expenses?
Generally, you can deduct moving expenses (up to the amount of income you earned at the new location) that you paid in the tax year if both of the following apply:
- You moved to work or run a business, or to study full-time at an educational institution that offers post-secondary courses.
- You moved at least 40 kilometres (one way) closer to your new workplace or school.
Can I claim a move outside Canada to go to school?
You may be able to claim moving expenses if you moved to or from Canada, or between two locations outside Canada if:
- you are a full-time student (including a co-operative student), a factual resident or a deemed resident; and
- you moved from the place where you ordinarily resided to live in another place where you will ordinarily reside.
You can’t claim moving expenses if you rent an apartment in another country where you are working temporarily, and you keep a residence in Canada. This is because your home in Canada is where the CRA considers you to ordinarily reside.
What type of income can I claim moving expenses against?
If you moved for work, you can deduct expenses from employment or self-employment income that you earned at the new location.
If you moved to take a job (for example, a summer job between semesters or a permanent job after completion of school), you can claim moving expenses against that income.
If you moved to attend school, you can claim moving expenses against income from a scholarship, bursary, fellowship, or grant, but only against the taxable portion of that income. If you are eligible for the tuition amount, it’s likely that your scholarship income is not taxable, therefore unlikely that you can claim moving expenses against it.
Note: You cannot deduct moving expenses from other types of income such as investment or employment insurance benefits, even if you receive this income at the new location.
What if my expenses are more than my income at the new location?
If your moving expenses are more than the eligible income you earned at the new location in the year you moved, you can carry forward the unused portion. Deduct the carry forward amount from employment or self-employment income earned at the new location in the following years.
You should report all your moving expenses on your tax return for the year you moved.