Moving to Another Province: What You Need to Know
Moving between provinces in Canada involves updating several documents and registrations. This article summarizes official federal information, focusing on moving expense deductions. For health cards, driver's licenses, and vehicle registration, please refer to the respective provincial authorities.
Moving Expenses Tax Deduction
According to the Canada Revenue Agency (CRA), you may be able to deduct moving expenses if you move for work or school. Key conditions include:
- Purpose: Moving to start a new job, run a business, or attend a post-secondary program full-time.
- Distance: Your new home must be at least 40 kilometres closer (by the shortest public route) to your new work or school.
- Residence: Your new home must be where you normally live (e.g., you sold or rented your old home).
- Within Canada: Generally, the move must be from one place in Canada to another.
Who Can Claim
- Employees or self-employed individuals: Deduct from employment or self-employment income at the new location.
- Full-time students: Deduct from taxable scholarships, bursaries, research grants, etc.
How to Claim
Use Form T1-M (Moving Expenses Deduction) to calculate the deduction and report it on line 21900 of your tax return.
Important Notes
- If your employer reimbursed you, you must include the reimbursement in income or reduce your expenses.
- Unused expenses can be carried forward, but not back.
- Expenses paid after the year of the move can be claimed in the year paid.
For details, see the official CRA page.