When you understand how to claim your moving expenses on a Canadian tax return, you’re putting more money back in your pocket. If the new place you’re renting while studying at school and you’ve kept your home address, you will not be able to deduct your moving expenses from your taxes. The main rule that applies for getting a tax refund when moving for school in Canada is that your new place must be established as your primary residence, with the transfer of required documents and change of address to that location. If you are self-employed, you can claim moving expenses on your taxes against your personal income, but you cannot claim it under income from stocks or investments. With a tax refund, you will likely get a percentage of the amount on some of the associated expenses, so your tax return is likely to be much lower than your employer’s reimbursement. This is more beneficial than relying on a tax return because the employer will cover the value dollar for dollar, even if it’s not on the move’s full cost. Taking advantage of these resources is an efficient, straightforward way to save on moving costs.Įmployers will often offer to reimburse most or part of your moving costs. It is possible to carry over your moving expenses in Canada and claim them against the next year’s income. If you are moving closer toward the end of the year, your move’s cost may exceed the new place’s earnings. You can claim your expenses for relocation purposes as well if you’re staying in the same company.Īnother factor to consider when planning on claiming moving expenses is you can only claim income earned at the new location. If you are moving for work, it doesn’t necessarily have to be for a new job. It is important to ensure that there is a clear paper trail and everything is accounted for in the moving budget. Keep in mind that, whether or not you will be eligible for a tax refund on your move, you should always keep all receipts and paperwork for anything you paid or signed. The main one is that your new residence has to be at least 40 km closer to your workplace or school than your old one. Of course, this rule comes with its caveats and restrictions. In short, you can claim moving expenses on your taxes in specific scenarios, if you are moving for school or work. If you’re wondering, can I claim moving expenses ?, here’s the breakdown. Are Moving Expenses Tax-Deductible in Canada?īecause homeowners are always looking for ways to save, a question that inevitably comes up is whether moving expenses are tax-deductible. We’ll give you a general idea of how much moving companies cost and provide a few essential tips to help you save on your upcoming residential move. Today, we want to answer some critical questions about moving expenses and what’s tax-deductible in a move. With the right steps and preparation, it is possible to maximize the efficiency of your move, minimize the expenses, and keep the stress levels from sending you over the edge. Coupled with the stress of relocating yourself or your family from one place to another, the hassle can take out all the joy of settling in a new home. For most homeowners in Canada, paying for moving services can be an unwanted but necessary expense.
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