TaxTips.ca - Students - Moving expenses

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Students - Moving Expenses

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Filing Your Return - Students -> Moving expenses

Income Tax Act s. 62(2)

If you have moved at least 40km to attend a post-secondary educational institution full time, then moving expenses may be deducted, but only from taxable scholarship or award income received in the year (most is now not taxable). Moving expenses are a deduction from income, not a tax credit, so they save taxes at your marginal tax rate.

Moving expenses can be claimed for the move to the educational institution at the beginning of each academic period, and for the move back after a summer break.

Normally, moving expenses are only an eligible deduction for a student if the move was either to or from a location within Canada. However, a move between two locations outside of Canada can also be an "eligible relocation" if:

	you are a Canadian resident (either factual or deemed) living out of the country, and
	you moved from the place where you ordinarily resided, to live in another place where you ordinarily reside.

Other resources, on Canada Revenue Agency website:

	P105 Students and Income Tax Pamphlet
	Form T1-M moving expenses deduction (to be filed with the tax return)
	Interpretation Bulletin IT-128 Moving expenses

Revised: April 16, 2010

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