Tax advice

Moving Expenses: How to Complete the Impotax Worksheet

Did you move to start a new job, operate a business at a new location or attend a post-secondary educational program? Some of your moving expenses may be deductible on your income tax returns.

To provide Impotax with the information required to calculate your deduction, download our preparation workbook:

Download the Impotax preparation workbook

The Moving Expenses worksheet is the sixth tab in the Excel file.

Before you begin

The worksheet helps determine:

whether your move meets the tax requirements;
whether you satisfy the 40-kilometre distance test;
which expenses may be eligible;
the income against which the expenses may be deducted;
whether unused expenses may be carried forward to a future year.

Complete only the yellow cells. The green cells contain automatic calculations and should generally not be modified.

Use a separate worksheet for each move. If a requested amount is nil, enter 0 instead of leaving the cell blank. A blank result in the summary may mean that information or confirmation is missing.

The worksheet provides an estimate. Impotax will confirm the final eligibility of the expenses when preparing your federal and Quebec income tax returns.

Who can generally claim moving expenses?

Moving expenses may generally be deductible if you moved to:

work at a new location;
operate a business at a new location;
attend a qualifying post-secondary program as a full-time student.

Your new residence must normally become the place where you ordinarily live. It must also be located at least 40 kilometres closer to your new place of work or study than your former residence was.

The distance must be calculated using the shortest normal route available to the travelling public.

Example of the 40-kilometre test

Suppose that:

your former residence was 75 km from your new workplace;
your new residence is 20 km from your new workplace.

The distance reduction is:

75 km − 20 km = 55 km

Because the new residence is at least 40 km closer, the distance requirement would be met.

However, if the new residence were 45 km from the new workplace, the distance reduction would be only 30 km. The move would not meet the 40-kilometre test.

1. Reason for the move

In the first section, explain why you moved. Indicate whether the move was related to:

a new job;
a transfer or change in work location;
starting or relocating a business;
full-time post-secondary studies;
another situation that should be explained.

Also provide the name of the employer, business or educational institution.

If you moved to study

Indicate:

whether you were enrolled full-time;
the name of the educational institution;
the name of the program;
the dates of attendance.

For a student, the deduction is generally limited to certain taxable amounts received as scholarships, fellowships, bursaries, research grants or qualifying awards.

If you moved to work, including for summer employment, your eligible expenses may instead be deducted from the employment or self-employment income earned at the new location, provided all the requirements are met.

Establishing a new ordinary residence

Confirm that the new residence became the place where you ordinarily live.

Also indicate what happened to your former residence:

it was sold;
it was listed for sale;
it was rented;
it was offered for rent;
the lease was cancelled;
another situation applies.

Temporarily staying near a new workplace without actually changing the place where you ordinarily live may not qualify as an eligible move.

2. Addresses and the 40-kilometre test

Enter the following three complete addresses:

your former residence;
your new residence;
your new place of work, business or study.

Then enter:

the distance from your former residence to the new place of work or study;
the distance from your new residence to that same location.

Use the distance based on the shortest normal route available through the public road network. Do not use the straight-line or “as the crow flies” distance.

The worksheet automatically calculates how much closer the new residence is. The result must generally be at least 40 kilometres.

Keep a copy of the route used to calculate the distances, such as a printed map or screenshot.

3. Dates, people and details of the move

Enter:

the date you left your former residence;
the date you arrived at your new residence;
the number of people who moved;
the province or territory where the trip began;
the country of departure or arrival, if the move was international;
the main method of transportation;
the actual distance travelled;
the number of vehicles used.

The number of people is required to calculate meal and temporary living expenses.

Sale of the former residence

Indicate whether your former residence was sold because of the move. If applicable, enter:

the date it was listed for sale;
the date it was sold;
the period during which it remained vacant;
the efforts made to sell it;
whether it was rented or occupied during that period.

This information is required to determine whether certain costs of maintaining the vacant former residence may be claimed.

4. Income that limits the deduction

The moving expense deduction generally cannot exceed the eligible income earned at the new location during the year.

Enter the information that applies to your situation.

Employment income

Enter the employment income earned at the new work location according to the applicable T4 or T4A slips.

Do not automatically enter all the employment income earned during the year. Only the income connected with the new work location should be considered, subject to the applicable deductions.

Self-employment income

Enter the net business income earned at the new location.

Use the business’s net income, not its gross revenue or sales.

Full-time students

Enter the taxable portion of eligible scholarships, fellowships, bursaries, research grants or awards against which the moving expenses may be deducted.

Unused expenses from a previous year

If part of the expenses from the same move could not be deducted in a previous year because there was not enough eligible income, enter the available carryforward.

Do not enter an estimated amount without supporting documentation. Use the amount established in your previous income tax return or tax records.

5. Expenses and supporting documents

For each expense, enter:

the amount paid;
the supplier’s name;
the nature of the expense;
the relevant dates;
any other information requested in the worksheet.

Keep all invoices, receipts, contracts, proofs of payment, travel records and other supporting documents.

A. Transportation and storage

You may enter expenses such as:

the moving company’s charges;
packing and unpacking services;
boxes and packing supplies;
temporary storage;
insurance for household goods during transportation or storage;
rental of a moving truck, trailer or moving equipment;
towing or transportation of items such as a boat or trailer.

The moving company’s invoice should preferably show the departure and destination addresses.

B. Travel to the new residence

Enter the expenses incurred to travel to the new residence, including:

airfare, train, bus or ferry tickets;
taxis or ridesharing services;
parking and tolls;
vehicle expenses;
meals;
necessary accommodation during the trip.

These expenses may apply to you and the members of your household who moved with you. Family members do not necessarily have to travel together or at the same time.

Detailed or simplified method

For vehicle and meal expenses, you must choose either the detailed method or the simplified method.

Do not claim the same expense under both methods.

Detailed method for vehicle expenses

Under the detailed method, keep:

fuel receipts;
maintenance and repair invoices;
eligible registration and insurance costs;
other relevant annual vehicle expenses;
a record of the total kilometres travelled during the year;
the kilometres travelled specifically for the move.

The portion attributable to the move is generally calculated using the following ratio:

Moving kilometres ÷ total annual kilometres

This percentage is then applied to the eligible annual vehicle expenses.

If more than one vehicle was used, provide the information separately for each vehicle.

Simplified method for vehicle expenses

Under the simplified method, enter the total number of kilometres actually travelled for the move.

The worksheet applies the per-kilometre rate for the applicable year and for the province or territory where the travel began. Even when using this method, keep a record showing the travel dates, destinations and kilometres travelled.

The rates may change each year. Make sure the tax year shown in the worksheet corresponds to the year for which the expenses are being claimed.

Detailed method for meals

Enter the actual cost of the meals purchased for all eligible individuals and keep the receipts.

Simplified method for meals

Enter:

the number of people;
the number of travel days;
the number of eligible meals.

The calculation is limited to the meals that were actually necessary, generally up to three meals per person per day.

Although detailed meal receipts may not always be required under the simplified method, you must still be able to support the duration of the trip and the number of people included in the claim.

C. Temporary living expenses

Meal and accommodation expenses near the former or new residence may be eligible for a combined maximum of 15 days.

Enter separately:

temporary accommodation near the former residence;
temporary accommodation near the new residence;
meals calculated under the detailed method;
meals calculated under the simplified method.

Indicate the number of people, the dates and the number of nights.

The 15-day limit applies to the total temporary stay near both residences. It does not provide 15 days for each residence.

D. Lease cancellation and incidental expenses

This section may include:

the cost of cancelling the lease for the former residence;
the cost of revising legal documents to reflect the address change;
the cost of replacing a driver’s licence;
the cost of replacing the registration certificate for a non-commercial vehicle;
charges for connecting and disconnecting utilities;
certain other incidental costs directly related to the move.

Do not include rent that was normally payable for a period before the lease was cancelled.

Do not include automobile insurance premiums in the cost of replacing a driver’s licence or vehicle registration.

Describe any amount entered as “other incidental expenses” in sufficient detail. Impotax will determine whether it is eligible.

E. Vacant former residence offered for sale

If your former residence remained vacant after the move while you made reasonable efforts to sell it, certain expenses may be eligible, including:

mortgage interest;
property taxes;
home insurance premiums;
heating;
utilities.

The total deduction for these expenses is generally limited to $5,000.

Clearly indicate:

the vacancy period;
the date the residence was listed for sale;
the steps taken to sell it;
any period during which it was rented or occupied.

These expenses are generally not eligible for a period during which the residence was rented or occupied by you or by someone who ordinarily lived there with you before the move.

F. Sale of the former residence

Enter the selling price for information purposes only. The selling price is not a moving expense.

You may then enter expenses directly related to the sale, including:

the real estate agent’s commission;
legal or notarial fees;
advertising costs;
certain survey costs;
the penalty for paying off the mortgage before maturity;
other expenses directly related to the sale.

Keep the deed of sale, statement of adjustments, legal or notarial invoices, real estate commission statement and mortgage lender’s statement.

Survey costs and other special expenses will be reviewed according to their nature.

G. Purchase of the new residence

Enter the purchase price for information purposes only. The cost of the residence is not deductible.

The following expenses may be eligible if you or your spouse or common-law partner sold the former residence because of the move:

legal or notarial fees related to the purchase;
land transfer taxes or duties;
certain registration fees;
other eligible acquisition costs.

Do not include GST or HST paid on the purchase.

Make sure the same tax, duty or registration fee is not entered more than once in different sections of the worksheet.

Expenses that are generally not eligible

The worksheet includes a list of expenses that should not be included in the total. These include:

renovations or improvements made to make the former residence more attractive for sale;
a loss incurred on the sale of the former residence;
travel before the move to look for a new residence;
travel to look for employment in another city;
the value of items the moving company refused to transport;
cleaning or repairing a rented residence to meet the landlord’s requirements;
the replacement of personal property;
mail-forwarding costs;
transformers or adaptors for household appliances;
mortgage default insurance;
expenses reimbursed by the employer when the reimbursement was not included in income.

The cost of moving a mobile home is generally not deductible. However, a reasonable portion representing the cost of moving personal belongings inside the mobile home may be considered in certain circumstances.

6. Calculation methods and information

In this part of the worksheet, select the methods used:

vehicle expenses: detailed, simplified or not applicable;
meals during travel: detailed, simplified or not applicable;
meals during the temporary stay: detailed, simplified or not applicable.

Then enter the requested information:

province or territory where the trip began;
total eligible kilometres;
number of people;
number of days;
number of eligible meals;
number of eligible temporary-stay days.

The worksheet automatically selects the amounts to include based on the methods chosen.

For an international move or an expense paid in a foreign currency, provide complete information about the amount, currency and payment date. The applicable conversion and any special tax rules will have to be reviewed separately.

Reimbursements received from an employer

Enter all reimbursements or allowances received or receivable from your employer.

An expense generally cannot be deducted if it was reimbursed and the reimbursement was not included in your income. The worksheet therefore subtracts non-taxable reimbursements from the eligible expenses.

If you did not receive a reimbursement, enter 0.

If possible, keep a letter or statement from your employer confirming:

the expenses that were reimbursed;
the amount of the reimbursement;
whether the reimbursement was included in your taxable income.

Other expenses requiring review

Some lines in the worksheet are marked “To be reviewed.”

Enter the expense in the appropriate section and provide:

a precise description;
the invoice;
proof of payment;
an explanation of how the expense relates to the move.

Do not automatically add these amounts to your eligible expenses. Impotax will determine the allowable portion after reviewing the documents.

7. Estimated summary

The summary shows:

transportation and storage expenses;
travel expenses;
vehicle and meal expenses;
temporary living expenses;
lease cancellation and incidental expenses;
costs of maintaining the vacant former residence;
selling expenses;
eligible purchasing expenses;
other approved expenses;
reimbursements to subtract;
eligible income earned at the new location;
the estimated deduction;
the estimated amount that may be carried forward.

The selling price of the former residence and the purchase price of the new residence are excluded from the expense total. They are requested for information purposes only.

Why might part of the expenses be carried forward?

The deduction for the year is generally limited to the eligible income earned at the new location.

If your net moving expenses exceed that income, the unused portion may be carried forward and deducted in a future year against the same type of eligible income related to the same move.

Moving expenses cannot be carried back to a previous year.

Documents to provide to Impotax

Submit the completed worksheet along with the documents that apply to your situation:

moving company invoices;
storage and packing receipts;
transportation tickets;
hotel invoices;
meal receipts if using the detailed method;
mileage records;
annual vehicle expense details if using the detailed method;
the lease and proof of lease cancellation costs;
the deed of sale for the former residence;
the deed of purchase for the new residence;
statements of adjustments;
invoices from the notary, lawyer or real estate broker;
the mortgage penalty statement;
property tax, insurance and utility bills;
proof that the former residence was listed for sale;
details of employer reimbursements;
documents relating to the new job, business or studies;
information supporting any unused amount carried forward from a previous year.

A credit card statement alone may not provide enough information. Whenever possible, include the invoice or receipt describing the expense.

Tips to avoid common mistakes

Before submitting the workbook, make sure that:

you used a separate worksheet for each move;
all addresses are complete;
both distances required for the 40-kilometre test are entered;
the departure and arrival dates are provided;
the number of people who moved is correct;
you did not use both the detailed and simplified methods for the same expense;
reimbursed expenses were not claimed a second time;
you entered 0 when a requested amount was nil;
the purchase and selling prices were not added to the expenses;
you kept the receipts and supporting documents;
each expense was entered only once.

Keep your supporting documents

Supporting documents are not normally filed with your income tax return, but you must keep them in case the tax authorities request them.

Impotax may also require these documents to confirm the expenses before filing your return.

Tax references

For additional information, consult:

Download the Impotax worksheet

Download the Excel workbook and complete the sixth tab, “Moving Expenses”:

Download the Impotax preparation workbook

This worksheet is intended to collect information and provide an estimate. The applicable rules may vary depending on the tax year, the location of the move, the nature of the income and your particular circumstances. Impotax will complete the final review when preparing your income tax returns.

Back to advices

Latest tax advice

All advice