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Moving

You can deduct reasonable amounts paid for moving the taxpayer, the family, and the household effects. Not all members of the household have to travel together or at the same time. Complete a separate form for each move.

You can deduct eligible moving expenses from employment or self-employment income you earn at your new location if you move and establish a new home to be employed or carry on a business. You can also deduct moving expenses if you move to study courses as a full-time student at a college, university, or other institution offering post-secondary education. However, you can only deduct moving expenses from the part of your scholarships, fellowships, bursaries, certain prizes, and research grants required to be included in your income.

Your new home must be at least 40 kilometres (by the shortest usual public route) closer to the new place of work or educational institution. You must establish your new home as the place where you ordinarily reside.

Note

Instead of claiming your actual expenses (the detailed method), you can choose the simplified method of claiming vehicle and meal expenses. Although you do not have to submit detailed receipts for actual expenses if you choose to use the simplified method, the government may still ask you to provide some documentation to establish the duration of temporary lodging.

What is the Home Buyers Tax Credit (HBTC)?

For 2009 and subsequent years, the budget proposes to introduce a new non-refundable tax credit, based on an amount of $5,000, for certain home buyers that acquire a qualifying home after January 27, 2009 (i.e., closing after this date).

How is the new HBTC calculated?

The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the credit will be $750.

Who is eligible for the HBTC?

An individual will qualify for the HBTC if:

• they acquire a qualifying home; and
• neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the year of purchase or any of the four preceding years.

If you are a person with a disability or are buying a house for a related person with a disability, you do not have to be a first time home buyer. However, the home must be acquired to enable the person with a disability to live in a more accessible dwelling or in an environment better suited to the personal needs and care of that person.

What is a qualifying home?

A qualifying home is a housing unit located in Canada. This includes existing homes and those being constructed. Single-family homes, semi-detached homes, townhouses, mobile homes, condominium units, and apartments in duplexes, triplexes, fourplexes, or apartment buildings, all qualify. A share in a co-operative housing corporation that entitles you to possess and gives you an equity interest in a housing unit located in Canada also qualifies. However, a share that only provides you with a right to tenancy in the housing unit does not qualify.

As well, you or the related person with a disability must intend to occupy the home as a principal place of residence no later than one year after buying it.

The purpose of the legislative provisions regarding child care expenses is to provide some relief for taxpayers who incur child care expenses in order to work, carry on a business or undertake certain educational activities.

A taxpayer is allowed to deduct in computing income for a taxation year an amount paid as or on account of child care expenses incurred for services rendered in the year. The deduction is limited to:

• a maximum of $10,000 per year for each eligible child in respect of whom the taxpayer may claim the disability tax credit for the year;
• a maximum of $7,000 per year for each other eligible child who is under 7 years of age at the end of the year; and
• a maximum of $4,000 per year for each other eligible child.

Depending upon the circumstances, qualifying child care expenses may be deducted by the taxpayer making the payment, by a supporting person or by both. Payments do not qualify as child care expenses if they are made to a parent or supporting person of the child, or to a person who is under 18 years of age and related to the taxpayer.

On July 1, 2006, the Government of Canada launched its program to offer individual Canadians a non-refundable tax credit to help cover the cost of public transit. Because it is a non-refundable tax credit, anyone who applies does not receive the money in the form of a refund. Instead, the amount claimed is multiplied by the lowest personal income tax rate for the year (15% for 2007, 2008) and then is deducted from the amount of tax owed for that year. Visit the Canada Revenue Agency Web site for additional information about how to qualify and claim the public transit amount.

What does the tax credit for public transit mean for me?

If your monthly transit pass costs $100, the amount you can claim in 2008 would be $1,200, resulting in a tax credit of $180.00 (twelve months multiplied by 15%).

You will be eligible to claim amounts you have paid for travel that occurs during the 2008 calendar year, but you must have proof of purchase. At a minimum you need to keep your expired public transit passes and receipts for electronic payment cards to support your claim.

Federal Government Link's:

• Canada Revenue Agency
• GST/HST technical information
• Interest and penalties
• Order remittance vouchers or payment forms
• T1 Income tax package for 2020
• Technical tax information