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Moving Expenses Rules and Calculations Glossary

Master the language of moving expenses expenses with this easy-to-navigate A–Z reference

 

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z


  • Cancelling a Lease – Fees or penalties paid to end a rental agreement early, eligible for deduction as part of qualifying moving expenses; unpaid rent is not deductible.
  • Carry Forward – The ability to apply unused eligible moving expenses to a future tax year when the taxpayer earns additional net eligible income from the same job, business, or educational program.
  • Carry Forward Limit (Foreign Tax Credits) – The CRA allows unused federal and Quebec foreign tax credits to be carried forward for up to 10 years from the original tax year in which the foreign tax was paid.
  • CRA Matching – The CRA compares deductions on your T1-M form with employer-reported benefits on your T4 slip; discrepancies may lead to reassessment or audit.
  • CRA Per-Kilometre Rate – The standardized mileage rate set by the CRA for vehicle travel during a move, used in the simplified method to estimate driving costs without receipts.
  • Detailed Method – A CRA-approved calculation method requiring receipts for meals and vehicle expenses; allows taxpayers to deduct actual amounts spent during a move based on documentation.
  • Eligible Moving Expenses – CRA-approved relocation costs such as transportation, storage, meals, temporary lodging, and certain real estate or legal fees, provided the move meets distance and purpose requirements.
  • Excess Moving Expenses – The portion of moving costs you personally paid beyond what was reimbursed by an employer or other party; only this amount is deductible.
  • Excluded Income – Types of income that do not qualify as net eligible income for the purposes of claiming moving expenses, including investment income, rental income, and employment insurance benefits.
  • Expired Foreign Tax Credits – Unused foreign tax credits that are not claimed within the 10-year carryforward period will expire permanently and cannot be recovered or carried back to prior years.
  • Federal Foreign Tax Credit (Form T2209) – The CRA form used to calculate and report the federal foreign tax credit, including amounts eligible for carryforward when the credit exceeds Canadian tax on foreign income.
  • Foreign Pension Income (Carryforward Use) – Retirement income from outside Canada, such as U.S. Social Security or U.K. pensions, which may result in excess foreign tax paid and create opportunities to apply carried-forward credits in future years.
  • High Foreign Withholding Tax – Situations where foreign countries impose high taxes (often 15–30%) on income such as dividends, leading to foreign tax credits that may exceed Canadian tax payable and create unused credits.
  • Incidental Moving Costs – Additional expenses directly related to relocation, including changing address documentation, disconnecting and reconnecting utilities, and updating licenses or vehicle registration.
  • Ineligible Moving Expenses – Costs that cannot be claimed as part of a moving expense deduction, including home staging, mortgage interest, house-hunting trips, and reimbursed expenses.
  • Legal Fees and Land Transfer Taxes – Deductible if incurred for purchasing a new home due to a qualifying move and if the old home was sold in the process.
  • Lump Sum Reimbursement – A one-time payment received from an employer to cover moving costs, which must be treated as a reimbursement; related expenses cannot be claimed.
  • Lump-Sum Foreign Gains (Carryforward Eligibility) – One-time capital gains from foreign property or securities that may result in high foreign taxes and low Canadian tax liability, causing unused foreign tax credits.
  • Meal Deduction – A flat-rate deduction of $23 per meal per person (up to $69 per day), claimable without receipts when relocating for eligible purposes.
  • Minimum Distance Requirement – CRA rule requiring the new residence to be at least 40 kilometres closer to the new work or school location to qualify for moving expense deductions.
  • Moving Expense Reimbursement Rules – CRA requirements stating that any employer-paid or reimbursed amounts must be excluded from your moving expense deduction; only unreimbursed costs are claimable.
  • Moving Expenses for Employees – Deductible costs claimed against employment income when relocating for a new job, provided CRA distance rules are met.
  • Moving Expenses for Students – Deductible only when moving for full-time post-secondary education and claimed against taxable scholarship, fellowship, or grant income.
  • Net Deductible Moving Expenses – The final amount of eligible moving costs that remain after subtracting all reimbursements; reported on Line 21900 of the T1 tax return.
  • Net Eligible Income – Income earned after a move from employment, self-employment, or taxable scholarships, which sets the upper limit for the amount of deductible moving expenses.
  • Net Foreign Tax Paid (Unused Credits) – The amount of foreign tax paid that exceeds the allowable Canadian tax credit in a given year, which may be carried forward for future use.
  • Quebec Foreign Tax Credit (Form TP-772-V) – The provincial form used to calculate foreign tax credit carryforwards for Quebec residents, which must be tracked and applied separately from federal credits.
  • Real Estate Fees – Eligible costs related to selling a former home, such as commissions, legal fees, and mortgage discharge penalties, if the sale was required by the move.
  • Reimbursed Moving Costs – Any relocation-related expenses covered by an employer, school, or other third party; these must be subtracted from your total claim to comply with CRA rules.
  • Simplified Method – A CRA-approved method allowing the use of flat rates for meals and vehicle travel during a move, requiring minimal documentation and ideal for low-cost or short relocations.
  • Student Net Eligible Income – Taxable scholarship, bursary, or grant income received by a full-time student after moving, used to determine the allowable moving expense deduction for education-related relocations.
  • T4 Reimbursement Reporting – The appearance of employer-paid moving benefits on your T4 slip, which must be matched against your claimed expenses to avoid duplication.
  • Temporary Living Expenses – Costs for meals and accommodation during the move or while waiting to occupy a new home, limited to 15 days and only deductible when directly related to the relocation.
  • Tracking Unused Credits (Foreign Tax) – The practice of maintaining records of each year’s unused foreign tax credits, including original amounts, remaining balances, and expiry dates, to ensure proper application before expiration.
  • Transportation and Storage – Deductible expenses for moving household goods, including truck rental, packing materials, in-transit insurance, and short-term storage directly tied to the move.
  • Travel for Moving – Deductible costs for relocating to a new home for eligible work, school, or self-employment reasons, including mileage, meals, and lodging during the trip.
  • Unused Foreign Tax Credit – The portion of foreign tax paid that cannot be claimed in the current tax year because it exceeds Canadian tax on the same income, and which may be carried forward for up to 10 years.
  • Vehicle Deduction – A moving-related vehicle expense claim based on actual costs (fuel, insurance, repairs, etc.) apportioned by the proportion of total annual kilometres driven for the move.
  • Vehicle Deduction (Simplified Method) – A flat-rate mileage deduction using CRA’s per-kilometre rate, based on the distance traveled during the move, with no receipts required.