Rates for Distance Claims Using the Simplified Method Released

Evelyn Jacks

We were spot on! The simplified per kilometer rates for medical and moving expenses for each province were announced by the CRA mid-February, and they jive with what we taught attendees a month earlier during the Advanced Tax Updated at the January CE Summits.  Here they are and details on when you would use them. Although, you do not need to keep detailed receipts for actual expenses if you choose to use the simplified method, the CRA may still ask for documentation to support your claim. Keep track of the number of kilometres driven during the tax year for your trips relating to medical travel (that is, when you must leave your home to receive medical treatments at least 80 kilometres away). You can also use this method in claiming travel expenses relating to your moving expense claim and for the purposes of the northern residents’ deductions.

To determine the amount you can claim for vehicle expenses, multiply the number of kilometres by the cents/km rate from the chart below for the province or territory in which the travel begins.

It is also possible to make a “simplified” or non-receipted claim for meal expenses enroute. If Claim a flat rate of $23/meal, to a maximum of $69/day (sales tax included) per person, without receipts.

If your client brings in more detailed records and receipts, you will choose the detailed method to calculate travel costs or meal expenses and claim the actual amount that you spent. That’s more work but it can also result in a higher claim.

Bottom line: you always want to file the best return for your clients’ time and money. 

Additional educational resources: You still have an opportunity to take Canada’s most up-to-date and comprehensive Advanced T1 Tax Update Course for Professional Tax Accounting firms and their new and returning staff who will file 2021 T1 Returns. This is Canada’s #1 tax training program for busy practice owners who need to recruit and train staff in time for this tax season.