Moving expenses

Are moving expenses CRA eligible in Canada?

Conditionally. Moving expenses are eligible medical expenses under the METC only in a specific and narrow circumstance: the patient must lack normal physical development or have a severe and prolonged mobility impairment, and the move must be to a dwelling that is more accessible or better suited to the needs of that person. This is governed by paragraph 118.2(2)(l.5) of the Income Tax Act. The maximum eligible amount is $2,000.

General moving expenses — for employment relocation, lifestyle reasons, or downsizing — are not eligible.

What Qualifies

• Reasonable moving costs (up to $2,000) when relocating to a more accessible or better-suited dwelling, where the patient lacks normal physical development or has a severe and prolonged mobility impairment
• Costs that are directly attributable to the move itself as defined under subsection 62(3) — professional movers, truck rental, transportation, storage, temporary lodging

What Does Not Qualify

• Moving expenses for a job change, lifestyle preference, or general relocation
• Moving to a larger home without a disability-related accessibility requirement
• Moving costs where the patient does not qualify as an eligible person with a disability

Good to Know

• "Moving expenses" has the same meaning as in subsection 62(3) of the Income Tax Act, which includes transportation and storage costs, travel costs, temporary living expenses near the old or new residence, and certain other costs directly related to the move

Frequently Asked Questions

Are moving expenses CRA eligible?

Only in a narrow circumstance. Moving expenses qualify as METC eligible (up to $2,000) only when the patient lacks normal physical development or has a severe and prolonged mobility impairment, and the move is to a more accessible dwelling.

Can I claim moving expenses through my HSA?

Only if the move qualifies under paragraph 118.2(2)(l.5). If those conditions are met, up to $2,000 of moving expenses can be reimbursed through a Health Spending Account.

Do I need a T2201 form?

No. A T2201 is not required for this specific provision. The qualifying conditions are that the person lacks normal physical development or has a severe and prolonged mobility impairment, but a T2201 disability tax credit certificate is not a stated requirement under paragraph 118.2(2)(l.5).

Source

Based on the CRA's official eligible medical expenses list and Income Tax Folio S1-F1-C1, "Moving expenses".