Evelyn Jacks: Claiming Moving Expenses

It’s crunch time when it comes to tax filing. Most taxpayers will have received all their T slips – T4s, T3s, T5s, etc. and now it’s time to actually get it done.

Whether that’s a do-it-yourself effort or a visit to the tax professional, be sure to claim the deduction for moving expenses if you qualify. It is quite possibly the most lucrative on the tax return.

For example, you may be able to claim real estate commissions paid to sell your home, travelling expenses for your family to the new location, and up to 15 days of temporary living accommodations if you can’t get into your new home yet, as well as the removal expenses themselves.

The deduction is available to employees and self-employed persons who move at least 40 km closer to a new employment or self-employment opportunity within Canada.

In order to qualify, the taxpayer must actively earn a salary, wage, or self-employment income at the new location. Investment or pension income, Employment Insurance, or other income sources are not deemed as qualifying income for the purposes of claiming moving expenses. Except for taxable student awards, income sources must be actively earned.

What this means is that if you are unemployed and move to get a job in another province, you’ll have to earn qualifying income against which moving expenses are claimable. Those who move and retire will need to get a job or start a business, at least for a little while, if they want to have qualifying income against which to deduct moving expenses.

It’s Your Money. Your Life. Moving expenses can be lucrative. You’ll need the receipts to be audit proof, but the extra cash will be worth it. Be sure to make the claim on Line 219 and Form T1-M Moving Expenses Deduction.

Evelyn Jacks is president of Knowledge Bureau and author of 51 books on tax and personal wealth management. Her newest book Jacks on Tax: 2014 Edition is now available. She is also the founder and director of the Distinguished Advisor Conference (DAC). The theme of the 2014 three day think tank in Horseshoe Bay, Texas Nov 9-12 will be “Think BIG: Find the Sweet Spots in Wealth Management”  Follow Evelyn on Twitter at @EvelynJacks.