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Can Unused Amounts Be Carried Forward?

Learn how the CRA allows you to carry forward moving expenses you couldn’t claim this year, and how to apply them when your income increases

Moving expenses can be substantial—especially when your relocation is tied to a new job, business, or post-secondary education. But what happens when your moving costs exceed your income for the year, or when you move late in the year and only work briefly?

That’s where CRA’s carryforward rule comes in. If you qualify to deduct moving expenses but don’t have enough net eligible income to use the full amount right away, you can carry the unused portion into a future tax year.

This matters if your financial situation is still ramping up after a move. You may be able to recover more of your costs as your income from the new job or business grows.

When You Can Carry Forward Moving Expenses

You may carry forward unused moving expenses if:

  • You incurred eligible moving expenses in the current tax year

  • Your net eligible income (from your new job, business, or scholarship) was less than your total moving costs

  • The expenses were properly documented and not reimbursed

  • The remaining income in future years comes from the same source and location that prompted the original move

This ensures the deduction continues to reflect the original purpose of the move—whether that’s employment, self-employment, or full-time study.

How the Carryforward Works

Let’s say you spent $12,000 on a cross-country move, but only earned $7,000 from your new job before December 31. You can claim up to $7,000 in the current year, and carry forward the remaining $5,000 to claim against next year’s income from the same job.

The carryforward continues until the full amount is used—no expiration date applies, as long as the income remains connected to your original move.

Tip: Keep a copy of your Form T1-M and all receipts. When you file in the next year, simply enter the unused balance, and it will be deducted against new eligible income.

What If You Change Jobs or Leave School?

If your future income is not from the original source that caused the move, you cannot use the carryforward.

For example:

  • If you moved for a job and later change employers or industries, the unused amount may no longer qualify.

  • If you moved for a full-time scholarship, but later switch to part-time studies or unrelated employment, carryforward may end.

Important: The carryforward is linked to the original intent and purpose of the move. Once that changes, any unused amounts are lost—even if you remain in the new city.

How to Claim the Carried Forward Amount

To apply your unused expenses in a future year:

  1. Retain your original Form T1-M (Moving Expenses Deduction) and receipts from the year of the move

  2. In your next return, complete a new T1-M, including the carried-forward portion

  3. Enter the eligible amount on Line 21900 of your return

  4. Adjust your claim based on your new net eligible income from the same source

CRA does not limit how many years you can carry forward the deduction—as long as the conditions remain valid.