What Can I Deduct on My Taxes After a Move?
Did you know that you can claim certain moving expenses on your taxes? The Canada Revenue Agency (CRA) allows people in some circumstances to claim a variety of items after they move. This could help to offset the overall cost of relocation, so be sure you know whether you are eligible to do this. If you are, you will also need to know what items are tax-deductible.
Your Trusted Local Movers Discuss Tax Deductible Moving Expenses
Knowing Who Is Eligible and What You Can Claim
- Employees and the Self-Employed – If you have relocated for your employer or a business of your own, you may be eligible for certain tax deductions. You may also deduct moving expenses if you have moved for summer employment. The eligible deductions would be taken from the income earned at the new location. If you earned income under the Wage Earner Protection Program, you can also claim that. Be aware that in order to qualify, your new place of residence must be at least 40 kilometres nearer to the new workplace than your last location.
- Full-Time Students – You might be able to claim some deductions if you are a full-time student. To be considered eligible, the purpose of your relocation needs to have been specifically to attend a post-secondary program at an educational institution such as a college or university. To be considered a full-time student, you must regularly attend such a program in Canada or elsewhere. During a given semester, you must also take at least 60 percent of the regular course load for the program in which you have enrolled. Similar to workers who can make such claims, your new home must be at least 40 kilometres closer to your new school.
- Deductible Expenses – If you are eligible, you may claim a variety of expenses. Deductible moving expenses include storage and transportation costs, travel expenses, temporary living expenses, and a lease cancellation fee if applicable. Some incidental costs might be included, such as utility disconnections and hookups, driving license replacements, and the cost of changing your address on legal documents. The expenses associated with maintaining and selling your old home may be deductible. If your former spouse sold your home after you moved, the cost of buying a new home might also be deducted.
- Providing Proof – As with other tax deductions, you should always be prepared to offer proof of the moving costs that you claim. Save the receipts for meals and vehicle expenses. Alternatively, you may claim a flat rate for meals, as well as the number of kilometres traveled multiplied by a certain rate in cents (see the CRA website for more detailed information). Save all documentation that could serve as proof of such costs.
Plan Your Alberta Relocation with Matco Moving Solutions
Matco Moving Solutions has helped countless students and workers relocate. We have served the area for 50 years. Whether you need movers in Fort McMurray, Edmonton, or Calgary, we are here to assist you.
For all your moving questions and needs, please give us a call at 1-800-661-3618. You can also request a free quote online today.