Deducting Moving Expenses Canada

If you’re planning to move for medical school or residency this year, it’s important to know that you can deduct various moving expenses from your tax return. This applies to resident physicians, who can claim these expenses against their employment income, and full-time students at post-secondary institutions, who can deduct them from taxable scholarships or awards. 

To qualify for these deductions, your move needs to be significant – at least 40 kilometers closer to your new school or workplace compared to your old home. This distance criterion is crucial for claiming moving expenses against employment income. 

The types of expenses you can deduct include: 

• Transportation Costs: This covers vehicle expenses for the move. 
• Moving Your Belongings: Expenses for packing, hauling, hiring movers, in-transit storage, and insurance for your items. 
• Travel Expenses: Costs for meals and accommodation while traveling to your new residence. 
• Temporary Living Expenses: This includes meals and accommodation for up to 15 days. 
• Lease Cancellation Fees: Costs incurred from canceling your old residence’s lease, not including any rent paid while you were living there. 
• Incidental Costs: These are various expenses related to your move, such as changing your address, obtaining new auto and driving licenses, and connecting or disconnecting utilities. 

It’s crucial to keep all receipts and documents to support your claim, as the Canada Revenue Agency may request them. For meals and vehicle expenses, you have the option to use either the detailed method (keeping all receipts and reporting exact expenses) or the simplified method (claiming a flat rate per meal, up to $69 per person per day, and a specific amount per kilometer for vehicle expenses). For example, in Ontario, you can claim 55 cents per kilometer traveled. 

Remember, this information is not intended as specific financial, investment, tax, legal, accounting, or professional advice and should not replace the advice of independent tax, accounting, or legal professionals.