Which costs can you deduct, and how do reimbursements affect your claim
Understand how CRA expects you to handle moving reimbursements, which costs remain deductible, and how to file your claim accurately
Once you’ve determined your move is eligible, the next step is knowing how much you can actually claim—and what to do if your employer helped cover the costs. The Canada Revenue Agency (CRA) is clear: only the amount you paid yourself counts, and any reimbursement must be subtracted from your claim.
This matters because many employers offer partial or full relocation assistance. If you don’t report this correctly, you risk overstating your claim, delaying your refund, or even triggering a reassessment.
Here’s how CRA handles reimbursements, how to coordinate your records, and how to calculate the actual deduction you’re entitled to.
What to Do If You're Reimbursed for Moving Expenses
If your employer, school, or another party reimbursed you for any part of your move, you cannot claim those amounts again on your return. You may only deduct the net amount you personally covered.
This applies whether you:
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Received a lump sum payment
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Were reimbursed after submitting receipts
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Had expenses paid directly by your employer (e.g. your company booked and paid the movers)
In all cases, CRA considers the cost covered—so it is not claimable by you.
How to Handle Reimbursement Scenarios
| Reimbursement Type | Can You Claim? | How to Report |
|---|---|---|
| Employer reimbursed you after submission | No | Subtract from your moving expense total |
| Employer paid the vendor directly | No | Do not include this cost in your moving expense claim |
| You were partially reimbursed | Yes (partial) | Claim only the portion you paid out-of-pocket |
| You received a lump sum for moving | No | Treat this as a reimbursement—do not claim related expenses again |
| Your expenses exceeded the reimbursement | Yes (excess only) | Subtract the reimbursed portion and claim the remaining amount |
What to Do Before Filing
To ensure your claim is accurate:
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Review your pay stubs and T4 slip
If you received reimbursement as part of your salary, it may show in taxable benefits. Verify how much was included and adjust your claim accordingly. -
Compare receipts to expense reports
If your employer covered part of a hotel bill or moving company invoice, deduct only the amounts you paid. -
Clarify with HR if needed
If you’re unsure whether a cost was covered, ask your employer. This helps you avoid accidentally claiming something twice.
Tip: Keep a running total in a simple spreadsheet with one column for what you paid and one for what your employer reimbursed. This makes it easy to calculate the deductible amount and prove accuracy if CRA asks.
Filing Instructions: Where and How to Report
Use Form T1-M (Moving Expenses Deduction) to calculate your total deduction. The form includes a field to enter any reimbursements received, which you must subtract before reporting the final number on your tax return.
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Enter the net total on Line 21900 of your T1 personal income tax return
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Keep receipts, mileage logs, and reimbursement records for six years
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If requested by CRA, you must provide documentation that clearly separates reimbursed from unreimbursed costs
When in Doubt, Leave It Out
It’s better to under-claim slightly than to overstate your deduction. Claiming expenses that were reimbursed—even by accident—can lead to reassessment, repayment, or penalties.
Important: The CRA matches T1-M deductions with information on your T4 and from your employer. Discrepancies may flag your return for review.