I moved from Calgary, AB to Surrey, BC, for a new job in WA USA. I got moving reimbursement as an income from my US employer. Can I claim the moving expenses with CRA

Moved from Calgary, AB, to South Surrey, BC for a new job in Washington, USA. I commute daily from Canada to USA. 

For my moving, I got a reimbursement package from my US employer but it was added to W-2 form as a US income. 

As I am a Canadian Resident, and I will report to CRA, can I claim the moving expenses to CRA? 

I am not sure if I can claim the expenses to IRS because I have moved within outside USA.

Answer

Although we cannot advise you on making the claim on your US tax return in regards to this unique situation, we can advise you on the following regarding the Moving Expense Deduction you may be eligible for on your Canadian tax return. It is suggested you contact CRA for further clarification.

According to CRA, you do qualify for the deduction as you have moved 40kms closer to your work location, however where you may be challenged on this is, "you have not moved for a new job or transferred within the same employer".

Here's a few points to consider if you decide to make the claim on your Canadian tax return:

  1. Be sure to include the reimbursement received in CAD dollars on your tax return.
  2. Only claim the expenses against your income earned at the new location, (Surrey).
  3. Do not make an excessively high deduction, especially if it exceeds the actual amount you were reimbursed.
  4. Have all your documentation (such as a letter from the employer stating exactly how much you were reimbursed), receipts and an explanation of "why" you made the move to support your claim when CRA requests them.

Here's a little more information from CRA on the Moving Expense deduction:

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-re...

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