International Student
Exams, essays, finding the perfect place to live and study, and thriving in school aren’t the only things that international and long-distance students need to worry about. They also need to consider how to file their taxes. The good news is that your moving expenses may be tax deductible.

Understanding how your taxation profile works in Canada

Knowing your residency status expressly for taxation purposes will help you determine how and whether you need to file your taxes with the Canada Revenue Agency (CRA). This is because taxation is based on where you live, not where you hold citizenship. The four main categories for international students are: non-resident, resident, deemed non-resident, and deemed resident. Your taxation profile category depends on how often you return to your home country and where you reside during the portion of the year when you are not studying. You are best to contact CRA to find out how you need to file as it is your responsibility to report any income and pay what you may owe. The CRA will assess whether or not you have established residential ties such as owning personal property in Canada, moving your dependents or spouse, having professional Canadian memberships (like to a professional association or designation), or you run a business in Canada. The good news about qualifying to file means you may also get to benefit from moving deductions.

How Moving Expenses Apply to Your Taxes

forms tax documents
If you relocate as an international student and have at least a 60 percent course load (full course load) at a Canadian college or university, you can claim your moving expenses on your taxes. The same goes for those born and raised in Canada who move at least 40kms closer to their school’s campus. If you have received a scholarship or grant for your studies, you can only claim your moving expenses against the taxable portion of this money.

What Are Moving Expenses?

Moving expenses aren’t just the cost of physically moving your items from point A to point B. These costs can include packing of items, packing materials, storage, movers, insurance, temporary living expenses and meals for you and your family (for up to 15 days), and the cost of cancelling the lease from your old home or selling your previous home. Incidental costs that may apply to your tax deductions surrounding a move include utility set ups and disconnections, and costs for change of address on legal documents and drivers’ licences.

Orbit International Moving Logistics Ltd.: Your International Moving Expert
We have over a decade of experience moving customers around the world. Some of our customers like us so much, they’ve used us more than once. Why did they come back to Orbit? Our customer service is what sets us apart – customer service representatives answer every question, no matter how small, and our moving crew shows up on time with all the materials they need to get the job done correctly the first time. To learn more about Orbit, call us at 416-661-4228.

How Do I Submit Moving Claims?

The form used to claim eligible moving expenses is called a T1-M, Moving Expenses Deductions and is filed along with your personal tax return for that taxation year. Since there is said to be a tendency for people to over-deduct moving expenses make sure you keep all of your moving related receipts where you can easily access them for seven years after filing in case you get audited. Most people will file these deductions the year they incurred the expenses, however some people may qualify to carry forward these expenses to the next taxation year.