Credits & Deductions, Families, Tips & Advice

Tax Tip: Ineligible Moving Expenses

If you move at least 40 kilometres closer to a new job or school, the CRA allows you to deduct certain moving expenses against your total earned income at the new location.  Deductible expenses include everything from the cost of tape and boxes, to the cost of maintaining your old home if you cannot sell it. These expenses are claimed on your personal T1 General Tax Return using the T1-M Moving Expenses form and reported on Line 21900 – Moving Expenses.

However, many expenses are not eligible and can be found here through the CRA website. Some examples of moving expenses which are not eligible:

  • If you are a homeowner:
    • money spent fixing up your old home before putting it up for sale
    • any losses from the sale of your home
    • the cost of default mortgage insurance
    • costs incurred in the sale of your old home if you delayed selling for investment purposes or until the real estate market improved
  • If you are a renter:
    • costs for repairing or cleaning the property
    • replacing features such as carpets or drapes

Additionally, the following costs commonly thought to be eligible expenses are not:

  • travel expenses for house or job hunting trips
  • mail-forwarding costs (such as with Canada Post)
  • expenses relating to moving a mobile home
  • costs of transformers or adaptors for household appliances

If the following situations apply to you, your moving expense claim is not eligible:

  • your new home is not at least 40 kilometres (by the shortest usual public route) closer to your new work or school
  • your expenses were reimbursed by your employer and not included in your income
  • expenses for which you do not have the required supporting documentation or receipts

More information on Moving Expenses can be found in the following CRA publications:

If at the end of the day you feel a bit overwhelmed trying to make sure you are claiming all the moving expenses you are entitled to, you may want to consider TurboTax Live Assist & Review and get unlimited help and advice as you do your taxes, plus a final review before you file.  Or, you can choose TurboTax Live Full Service * and have one of our tax experts do your return from start to finish.

*TurboTax Live™ Full Service is not available in Quebec.