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Moving Expenses for Students

For students, there are a few well known tax credits, however, many forget about moving expenses.

As long as you are going farther than 40 KM from home to go to school, you should be able to claim line 21900 Moving Expenses.

Microsoft Canada

Kind of Moving Expenses

Transportation and storage costs?

You should be OK claiming those but remember to keep all receipts.

Travel expenses

Yes, but be careful how you claim your usage. Check the CRA for exactly how to claim these. Remember to keep all receipts for meals, gas, and incidentals.

Expenses while looking for a place

Up to 15 days of expenses if you have to hunt around to find an apartment.

What if I am in CO-OP?

Moving every 4 months or 8 months can get expensive. The documentation states:
For co-operative students moving back after a summer break or a work semester, you can also claim your moving expenses as long as you meet the previously-stated requirements.

What if I am graduating?

For those graduating if you are moving out of your University living quarters and are moving to a new city to get a job, that is a moving expense. If your employer reimburses you for it, then you cannot claim it. The 40 KM rule comes into play here as well.

As a former Co-Op student, I ended up moving every 4 months. I became quite adept at making my life fit the trunk of a Mercury Zephyr.

Remember it is important to keep all receipts and proof of distance in case the CRA wants proof of moving.

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Taxes Delayed, Money Lost

This year (2020) is a very odd year in terms of submitting your taxes. Thanks to the COVID19 outbreak, the current official date for submitting your 2019 taxes is: June 1, 2020 (check the link for any updates)(you only have to pay on September 1st though). Just remember Taxes Delayed is Money Lost (to you).

get your taxes done
Tax Time

September 1st, is the date when you must pay your taxes if you owe money. If you are owed a rebate, what are you waiting for? There are so many good reasons to do your taxes now:

  1. If you are owed money, and are unemployed due to the Pandemic, you really could use the tax free money, right?
  2. If your tax return is simple, why not do it now. You know the CRA is busy doing other things as well, but they are pretty quick on returns.
  3. Most of your specific information is on your My CRA account, you can pretty much do it, with that data (if you are missing data)
  4. If you owe money, better to know now what you owe, and then you can plan accordingly. The CRA will send you a response, and you could even appeal if you feel they are wrong.
  5. See (1) again, and re-read a few times if you are not sure.

Do you like loaning the government your money? Why are your Taxes Delayed ?

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My CRA Account

One of the most important things you can have is have a My CRA on-line account with the Tax Folks. How do you do that?

Straight forward

Go to this web site to start the process: CRA Log In Registration Site . Note you will need a copy of last years Tax return to verify you are who you are. Once you register, you wait, because the CRA will then send via Canada Post your log in credentials.

Yes, this is cumbersome, but also very important. This variation on 2 stage verification is important to ensure no scurrilous nasty folk get at your CRA data. Even in troubled times, security is very important.

Once this letter shows up follow the instructions and log in. After logging in once, you can then put that information somewhere very secure, and forget about it. Why? Your Bank access for online banking can be used (for most of us) as our log in after that.

Why Get it?

Why is My CRA so good to have? Here are a few things you can get there:

  • Your TFSA limit for this year. This is calculated at the start of the year, so if you have already deposited money into it, you’ll have to take that into consideration.
  • Your RRSP limit for the year. See the TFSA for the same cautions about the data.
  • The Status of your Tax Return or Appeal. I have found this invaluable with my many reviews and such. Typically the CRA will tell you if you have email to deal with from them as well.
  • Emails from the CRA about your return, or appeal. This is the only way the CRA will contact you, and it will tell you to check My CRA, without any link. They won’t ask for iTunes cards either.
  • Usually you can download your Tax data into Turbotax and other Tax Prep software, which makes life infinitely easier. I used that this year, very useful.
  • Lots of other stuff too.

If you are an on-line person, get this access now, it will make your life much simpler.

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New Year Tax Checklist

My friends at UFile wanted you folks to be ready for your taxes, so here is a helpful tax checklist for you to use.

New Year Tax Checklist

By Gerry Vittoratos, UFile

General Items

☐ Get all of your tax documents organized in one folder. Subdivide your folder into the following groupings:

  • Income slips (T4, T5, T5008, T4A, T4A(OAS), T4A(P), T4RSP, T4RIF, capital gains transactions summary etc…)
  • Expense receipts related to deductions (RRSP, union or professional dues, childcare, moving expenses etc…)
  • Expense receipts related to credits (Donations, medical expenses, tuition etc…)

☐ Do you own any foreign property (bank accounts, stocks, bonds not in an RRSP/RRIF/TFSA) whose overall cost surpassed $100,000 Canadian at some point in the year?

  • If yes, you must complete and submit the T1135 form

☐ Has your marital status changed in the year?

☐ Did you sell your personal residence during the year?

  • If yes, you must produce and file the T2091 form with your tax return

☐ Did you move to another province during the year?

  • If yes, use the tax package of the province you resided in on December 31st.

☐ Do you have an impairment that is eligible for the Disability Tax Credit?

☐ Did you have a child during the year?

  • If yes, complete and submit the RC66 form to the CRA to start collecting the Canada Child Benefit.

☐ Do you live with an infirm or disabled adult dependant in your own home?

☐ Do you have a copy of your previous year’s Notice of Assessment?

  • Important to find this document, which indicates carry forward amounts you can claim to reduce your tax payable and your RRSP contribution limit.

☐ Are you employed but with low income and had medical expenses?

  • Make sure to claim your medical expenses even if you have little to no tax to pay. You might be entitled to the refundable medical expense supplement credit, which reimburses you for portion of your expenses regardless of your tax payable.

☐ Are you self-employed and you paid income tax during the year through instalment payments?

  • If yes, make sure to claim these instalment payments against your tax payable.
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Other items based on recent changes

☐ Are you self-employed and purchased capital assets during the year?

☐ Are you self-employed and purchased a zero-emission vehicle after March 19th, 2019?

☐ Are you a school teacher in an elementary of secondary school and paid for supplies out-of-pocket?

☐ Was your income (or your spouse’s) too low in the prior years for the childcare expense deduction to have an effect on your tax return?

  • If yes, Ontario (New CARE credit) and Quebec offer a refundable credit that can be claimed even if your income and tax payable are low. Make sure to claim the expenses even if there is little effect on the Federal side.

☐ Are you a modest income earner with multiple T4s?

  • This year the federal government has enhanced the Canada Workers Credit. This is a generous refundable credit, but your income still needs to exceed a minimum threshold amount to qualify for it. Make sure to declare all your employment income.

Remember that UFile allows you to file for free, if you qualify.


Gerry Vittoratos –  Gdip Taxation

Gerry Vittoratos has been working for Thomson Reuters for over 10 years as a trainer and tax support resource person. In his capacity as head trainer, Gerry has been providing training sessions to tax professionals all over Canada. He has also made several radio and TV appearances on BNN and Global TV as the UFile tax specialist discussing a multitude of tax topics, and is the author of the UFile and DT Max tax blogs. Gerry has also served as the main resource person for the tax support department of Thomson Reuters, resolving complex tax issues and questions for tax professionals using the DT Professional Suite.

Gerry obtained his Graduate Diploma (Gdip) in Taxation from University of Sherbrooke in 2018, and is in the process of obtaining a Master’s of Taxation.

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CRA Quick Response

Careful What You Wish For From the CRA

I was delighted to see a response on my re-assessment, so quickly after I had called asking for status. After logging in to look at “My Account” I was a little concerned when I saw my account balance continued to be $0 (zero dollars).

Going into the Email section, I found out that I had made a bad assumption, and it was going to cost me more time. I had sent my support documentation for my claim that my son’s school fees were a medical expense in December. This package included letters from various professionals agreeing with this claim.

The package was sent on a Tuesday, however, on the Thursday afterward I received a package from the CRA. This package was all the supporting receipts for the same claim. I didn’t think much of it, but that was where I blundered.

This past Friday the CRA granted my claim for my son’s school fees as a medical expense. They pointed out, however, that since they didn’t have any receipts, they could not actually refund me any money.

After an obscenity filled few minutes, I calmed down, and realized how the sequence of events had worked against me.

What I Should Have Done?

I should have gone back on-line and submitted the receipts (again) to the CRA, with my supporting documents. The receipts have been sent again, however, I am back in the CRA queue, and I will need to follow up with them until they finally refund me my money (from 2017).

Guess I should have taken my own advice, that you can never send too much documentation to the CRA.

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