Moving Expenses Deduction: Who Qualifies and What You Get
Learn if you can claim moving costs on your taxes if you moved more than 40km for post-secondary school.
If you moved a significant distance to attend post-secondary school, you may be able to claim those costs on your tax return to help ease the financial burden of your relocation.
Who it's for
This scheme is specifically designed for students. To qualify, you must have moved a distance of at least 40km to attend post-secondary school. This distance requirement is a key factor in determining if your relocation qualifies for the deduction.
What you get
When you qualify, you receive a moving deduction. This is not a direct payment, but rather a way to reduce the amount of income you are taxed on. By applying this deduction, you can lower your taxable income, which may reduce the total amount of tax you owe for the year.
What it costs you
While there is no fee to apply for this deduction, it does require significant record-keeping. You must be able to provide proof for every expense you claim. You will need to keep organized receipts for all costs related to your travel, any storage fees you incurred, and the various costs associated with the actual moving process.
The catch to know
There is a specific limitation on how you can use this deduction. You cannot simply apply it to any income; you can only deduct these moving expenses against the income that you earned at your new school location. If your earnings at the new location do not meet certain criteria, you may not be able to utilize the full amount of your moving costs.
How to apply
- Gather and organize all your receipts for travel, storage, and moving costs.
- Confirm that your new school location is at least 40km away from your previous home.
- Calculate your total eligible expenses based on your documentation.
- Report the deduction on your tax return to offset your local income.
- Find more detailed guidance on the official portal: 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.html