Moving Expenses Can Be Tax Deductible

Moving Expenses Can Be Tax Deductible

In order to be tax deductible, moving costs must be incurred in specific and relatively narrow circumstances. Our tax system allows taxpayers to claim a deduction only where:

• The move is made to get the taxpayer at least 40 km closer to his or her new place of work, whether that work is a transfer, a new job, or self-employment.
  ie) From Ottawa to Toronto.
• Students who are moving to take a summer job (even if that move is back to the family home) can also make a claim for moving expenses where that move meets the 40-kilometre requirement.
• Even where the 40-kilometre requirement is met, it is possible to deduct moving costs only from employment or self-employment (business) income earned at the new location — there is no deduction possible from other types of income, like investment income or employment insurance benefits.