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Can seniors deduct moving expenses in Canada?

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As we all know moving can be quite expensive whether you are moving down the street or across the country. This is why it’s important to plan your move well. To help you set a budget and see how much a move will cost you get a few moving quotes. Once you know how much a move with Number 1 Van Lines will cost, you can start planning your move. The good thing about living in Canada is that you might be able to deduct your moving expenses. If you are eligible you will be able to get some money back. So can seniors deduct moving expenses in Canada? If you keep reading you will find the answer to this.

Understand the moving costs

The first thing to do is to understand the moving costs. It all starts with this. How much your move will cost you? Are you moving long distance or locally? The distance affects the price of your relocation. Also, how many things do you need to move? Are you planning to get help or do it alone? When you answer all of these questions you can calculate your moving expenses and set a budget. Make a list of the moving services that you will need and write down the price. This will help you stay within your budget. Also, this is something you should do months in advance.

You can get a free moving quote that will help you decide which moving company and which moving services fit your budget. Be aware of suspiciously low prices. Anything cheaper than the industry standards is a possible scam. You need a reliable moving company that has experience in handling senior moves.

A person figuring out how can seniors deduct moving expenses in Canada
Before you organize a relocation you need to understand moving costs.

Reliable and understanding senior moving services is what you need for a successful move

Relocation is stressful for everyone, but it can be twice as much hard for senior citizens. The relocation process is physically challenging. This is why getting a senior moving service is important in order to have a successful move. You are not of the age where you can lift the boxes and dismantle your furniture.  Even younger people are prone to injuries during relocations, now imagine seniors. Hiring professional movers will help you smoothly transition to your new home. Let them take care of your move, after all, you deserve to relax after all these years of working. It’s time to enjoy your retirement and be stress-free.

How can seniors deduct moving expenses in Canada?

Not everyone is a good candidate for writing off tax expenses. There is a certain criterion for eligibility that needs to be respected in order to be able to do it. Also, there are only certain types of expenses that can be deducted. So before you try to claim your tax deduction you need to make sure that you meet the right conditions. If you fall under the eligible category you will have to use the T1-M Moving Expenses Deduction form to calculate all of the expenses that you could claim on line 21900 of your T1 return. And most importantly you need to keep all your moving receipts and the T1 form just in case Canada Revenue Agency requests you to provide proof for your claim.

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Learn how can seniors deduct moving expenses in Canada before moving.

Who can claim the deduction of moving expenses on their income tax return?

Students, employees, and the self-employed can claim the deduction of certain moving expenses if they move because of their education or employment. In general, you can claim the deduction for moving expenses you paid during the year if both of the following conditions apply:

  • You moved to work or run a business, or to take full-time courses in a post-secondary program.
  • You have moved at least 40 kilometers closer to your new place of work or study.

So can seniors deduct moving expenses in Canada?

There is a specific criterion that makes retired seniors eligible for this. You need to be a retiree who wants to move back after working outside of the country. This is the only way that a senior is a good candidate for this. If you are not in this situation and you are looking to move after your retirement to another place you will not be eligible for this. However, senior citizens get many other tax deductions so not being eligible for this one is a minor issue.

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With a reliable senior moving service, you will have an easy move.

What expenses are deductible?

You should know that you cannot write off all the moving expenses. The ones that you can deduct are:

  • Transportation and storage costs of furniture – this includes packing, towing, movers, temporary storage, and insurance
  • Travel expenses that you and your family paid to get to your new residence – this includes car, meals, and accommodation costs during the trip.
  • Temporary living expenses – meals and accommodation near your old and new residence, for a maximum of 15 days, for you and your family members.
  • A cost for terminating the lease of your old residence- this excludes any rent for a period during which you occupied this residence. However, you cannot claim rental fees for a period before the cancellation of your lease, whether or not you occupied the residence during that period.
  • The cost of changing your legal documents- replacing driver’s license, vehicle permits, utility hookups, and disconnections. These are all deductible as long as they are related to the move.
  • Buying and selling property as a part of the move – this includes legal fees, advertising, mortgage penalties, and real estate commission

As you can see, if you are eligible for the tax deduction your move will not cost you a lot. Moreover, the process is pretty much simple. You will be able to calculate the tax deduction online.  However, if you still need some clarification on how can seniors deduct moving expenses in Canada, you can give a call to Tax Revenue Agency in your city. They can answer all your questions regarding this matter.