If you moved to another province during the year, here’s an important tax rule to remember: Your tax return is filed based on the province you lived in on December 31st, and your entire year’s income will be taxed according to that province’s rates. So even if you moved in January or December, what matters is where you lived at the end of the year.
If you moved because of a new job or a work relocation, you may be eligible to claim moving expenses. You’ll need to enter your moving date on your tax return—that detail is important.
Just a heads-up: moving expenses are a common audit area for the Canada Revenue Agency (CRA). If you get a Review Letter from CRA, don’t panic—just send exactly what they ask for. Typically, they’ll request:
- A letter from your employer – confirming your job start date and whether they reimbursed any of your moving expenses (if not, you should clearly state that it was $0 reimbursed).
- Your employment contract – to further support that the move was for work reasons.
- Receipts for the moving expenses you claimed – such as airfare, temporary accommodation (hotels or Airbnb), moving company invoices, etc.
As long as your documents are complete and your claim is reasonable, these reviews usually go smoothly.
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