Be careful when claiming moving expenses

CRA wins case against remote worker who claimed $67,000 in moving expenses

This case revolves around an Ontario taxpayer who, in her 2021 tax return, claimed nearly $67,000 in moving expenses for a relocation in early February of that year. The Canada Revenue Agency (CRA) disallowed her claim, prompting her to challenge the decision in Tax Court.

The Income Tax Act allows you to deduct moving expenses for an eligible relocation—one that enables you to work or attend school at a new location. To qualify, the move must reduce your commuting distance by at least 40 kilometers. These expenses can then be deducted against the income earned at your new workplace or educational institution.

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