SNiPS – School’s Starting – Students and Income Tax

Students Moving Expenses

If you have moved at least 40km to attend a post-secondary educational institution full time, then moving expenses <https://www.taxtips.ca/filing/movingexpenses.htm> may be deducted, but only from taxable scholarship or award <https://www.taxtips.ca/filing/students/scholarships.htm> income received in the year (most is now not taxable), as well as from employment income earned in the new location while at school. Moving expenses can be claimed for the move to the educational institution at the beginning of each academic period, and for the move back after a summer break.
Normally, moving expenses are only an eligible deduction for a student if the move was either to or from a location within Canada.  However, a move between two locations outside of Canada can also be an “eligible relocation” if:

  • You are a Canadian resident (either factual or deemed) living out of the country, and
  • You moved from the place where you ordinarily resided, to live in another place where you ordinarily reside.

 

Larry Smithers
Smithers Group/LGC Smithers Inc
89 King Street West
Dundas, Ontario
L9H 1v1
Email: info@lgc-smithers.com
http://smithersgroup.ca
https://lgc-smithers.com

 

LGC Smithers and Associates are Accounting, Book Keeping, Payroll & Income Tax Specialists based in Dundas, Ontario.   We serve businesses in the greater Hamilton area and offer expert tax advice.  Contact us today to discuss how we can help with your financial needs at 905-627-2910.