Student Moving Expenses: When Your School Move Is Deductible

If you moved this fall to start school, student moving expenses may be one of the simplest tax claims you can miss. The move can be deductible, but only if you meet CRA’s distance rule and you have the right kind of income to claim it against. The current CRA moving expenses page explains the rule clearly, and the student guide says the same thing in plain language. You can check those rules on CRA’s moving expenses page and in Guide P105, Students and Income Tax.

We see this every year. Students move, get settled, wait for tax slips, and only then realise they may have paid a deductible expense. That is where the confusion starts. The good news is that the rule is practical once you break it down. If your move qualifies, it can help reduce the taxable part of your student income and, in some cases, your employment income too.

"I moved for school, so I assumed the cost was just personal."

The 40 km rule is the first test

This is the rule that decides whether the move qualifies at all. CRA says your new home must be at least 40 kilometres closer to your new school, measured by the shortest public route. That means the move has to shorten the distance to school in a real way, not just make life a little more convenient.

Think of it this way. If you moved from your family home in Mississauga to an apartment near downtown Toronto and your school commute is now much shorter, that may meet the rule. If you moved across town but the school is not at least 40 kilometres closer, the claim usually fails. The distance test is not optional. It is the gatekeeper for the deduction.

CRA also says the move must be tied to your studies, not just personal preference. If you want to read the official wording, the CRA page on line 21900 moving expenses is the place to check.

Who can claim student moving expenses

For students, the key requirement is full-time attendance in a post-secondary program at a university, college, or other educational institution. CRA’s student guide says students who have the full-time enrolment box on their school form may qualify, and it also notes that moving expenses can be claimed when you move at the start of an academic period or when you move back after a summer break. That is why fall moves matter so much.

There is also a second path. If you moved for school and also had employment or self-employment income at the new location, the move may qualify on the work side too. This is especially common for students who worked a summer job, moved for a co-op placement, or returned to school after working between terms. The CRA student guide explains that these moving expenses must be deducted from employment or self-employment income earned at the new location, while the school-related claim is tied to the taxable part of student awards.

If you want a broader filing overview, our student tax return guide is a helpful place to start.

What moving costs usually qualify

CRA allows most ordinary moving costs that are directly tied to getting you and your belongings to the new home. The main categories are transportation and storage, plus travel expenses. In plain English, that means things like packing, hauling, movers, in-transit storage, insurance for household items, vehicle costs, meals, and accommodation during the move.

The official student guide at Guide P105 and the CRA moving page both point to the same idea. If the cost was part of the actual move, it may qualify. If it was just part of your general student life, it usually does not.

Here are the common qualifying expenses:

• Movers, packing, hauling, and storage in transit

• Fuel, vehicle costs, and parking connected to the move

• Meals and accommodation during the trip to the new home

• Insurance for household items while they are being moved

If you are claiming vehicle or meal costs, keep good records. CRA can ask for support later, even if you use the simplified method.

What does not qualify

This is where a lot of students get tripped up. CRA does not let you claim every cost that happens around a move. House-hunting trips before the move do not count. Neither do work done to make the old home more saleable, losses on the sale of your home, mail-forwarding costs, or many costs related to cleaning or repairing a rental unit for the landlord.

That means the move itself may be deductible, but the side costs usually are not. If you spent money before you had actually moved, ask whether that cost was part of the physical relocation or just part of settling in. That difference matters.

The CRA moving expenses page has the full list of ineligible amounts, and it is worth checking before you file. For students, that step can save a lot of back-and-forth later.

What income the deduction can reduce

For a school move, the deduction is usually claimed against the taxable part of your scholarships, fellowships, bursaries, certain prizes, and research grants. That is the student side of the rule. If your award is fully tax-free, there may be nothing to deduct the moving expense against.

For a work-related move, the deduction is claimed against employment or self-employment income earned at the new location. The CRA guidance is clear that you cannot use moving expenses to reduce every type of income. You generally cannot deduct them against investment income or EI benefits, even if you received that income after the move.

If you are also balancing school and work, that can still work in your favour. CRA’s folio on moving expenses explains that a student who relocates to attend school full-time and also has eligible work income at the new location may be able to deduct the expenses against both types of eligible income, up to the limits that apply.

Unused moving expenses can carry forward

This is one of the most useful student rules. If your eligible moving expenses are more than the taxable income you can use them against in the year, you do not automatically lose the extra amount. CRA allows the unused portion to be carried forward and claimed in a later year against eligible income of the same type.

So if your move cost more than the taxable scholarship or employment income you had this year, keep the records. The money is usually not lost. But the delay causes confusion and stress, especially when students do not realise the carryforward exists.

If you want help sorting out which year to use the claim in, our personal tax return service can help put the pieces together.

How to claim it on your return

CRA says to complete Form T1-M, Moving Expenses Deduction, and enter the result on line 21900 of your return. Keep your receipts, mileage logs, and any supporting documents. If your move involved more than one eligible period, you may need a separate form for each move.

It is also smart to keep the papers that show why you moved. Save your school registration details, the date you moved, and the amount of taxable student income you reported. If you are a newcomer student, or you came to Canada for school, our tax help for International Students page may also be useful.

If you are filing from Toronto and want a second set of eyes on the return, our contact page is the easiest way to reach us.

Do not leave the claim too late

Fall moves are happening now, but the tax slip gathering comes later. That is why students often miss this claim. Once the receipts are gone, the claim gets harder to support. Once the return is filed, missing the deduction can mean a smaller refund or a larger balance owing than necessary.

If your return includes tuition slips, student income, and a school move, it is worth slowing down and checking the rules before you file. If you are not sure whether your move qualifies, speak with a tax professional who works with student returns every year. We can help you file it properly and avoid leaving money behind.

For a clear review of your return, start with our contact us / request a callback page.