Teacher Exchange and Canadian Income Taxes

Posted by on March 7, 2016

So exchange teachers can claim moving expenses to the exchange location and back again. While I spoke with a few exchangees who did make such claims, I really had no idea what to expect. Now I have everything filed, reviewed, and accepted so I though I’d share the list of what Canada Revenue Agency (CRA) asked for in support of the claim.

THIS IS NOT TAX ADVICE, I AM NOT AN ACCOUNTANT! TALK TO A REAL ACCOUNTANT, DO YOUR RESEARCH. This information is just my experience and should not be used to do anything important. Disclaimer, disclaimer, disclaimer.

I did lots of research on the CRA website, had saved pretty much every receipt, itinerary, etc from the whole year away, and pulling everything together wasn’t that challenging. I scanned all the documents, labeled each item, assembled it into a PDF and zipped it back to CRA via their website. Documents like the Australian Visa, exchange correspondences from Australia and Manitoba exchange coordinators, the housing/vehicle exchange agreements all most of the details (addresses, dates, etc) that were required. We also had receipts for meals, accommodations, etc while in transit. We arranged emails from the friends and relatives we stayed with there and back as required. A few weeks later I received a letter saying they had reviewed everything and accepted the claims.

Below is the text of the letter I received outlining the CRA review and what they required for the moving expenses claim. If nothing else, it will give you an idea about what to save and what to have ready when you file your taxes. Basically… SAVE EVERYTHING and label it as you go. But please, don’t rely on this information, things may change and your experience may be different.


To support your claim for moving expenses, please provide the following information, as applicable:

 – a completed Form T1-M, Moving Expenses Deduction;

– a letter from your or your spouse’s or common-law partner’s employer at the new work location confirming:

– the date you or your spouse or common-law partner changed work locations;

– if you or your spouse or common-law partner were reimbursed for all or any part of the moving expenses;

– the amount the employer paid and if this amount was included in your or your spouse’s or common-law partner’s T4 or T4A slip.

– the complete address of the:

– old and new residence;

– new business or place of employment; and/or

– educational institution;

– the date of each trip, the reason for each trip, and the expenses incurred during each trip;

– the number of kilometres that you drove in the calendar year that relate to the move;

– receipts and/or documents to support the accommodation portion of the travel expenses claimed;

– a statement showing how you calculated the meal expenses;

– receipts and/or documents that:

– support the accommodation portion of the temporary living expenses claimed;

– confirm the length of time spent at the temporary accommodations.

 NOTE: If you lived with family or friends, we need a letter from them confirming the length of your stay.

 – a statement from a lawyer or notary showing the fees paid for the sale and/or purchase of the residence;

– a copy of the real estate listing agreement or the sales agreement for your or your spouse’s or common law partner’s former residence that confirms the listing date;

– receipts for the title transfer or registration of the new residence;

– the net income you earned at the new work location from employment, self employment, or taxable awards (such as scholarships, fellowships, bursaries, certain prizes, or research grants) that have to be reported on your or your spouse’s or common law partner’s income tax return.

 NOTE: If you are self-employed, provide a breakdown of the net (minus expenses) self-employment income earned before and after the move;

 – the amount the employer paid and if this amount was included in your or your spouse’s or common-law

– documents such as a lease agreement, utility bills, phone bills, cable bills, or postal information that show you had established residential ties at your old location in Canada before moving to your new location in Canada;

– If any part of the amount claimed is carried forward from a past year, provide receipts and/or documents to support the total expenses for the move, and if applicable, indicate the year and any amount previously claimed.

 NOTE: If you are sending photocopies of cancelled cheques, copy both sides of each cheque unless the front of the cheque has been micro-encoded by the banking institution.

Please send us the information requested within 30 days. If we do not receive a reply, we will disallow the amounts under review and you could have a balance owing.

Please send only one reply. Your reply should include all the information and documents needed to support your claim. Include your social insurance number and the reference number from this letter on your documents. Keep a copy of any documents that you send to us. We only return original documents. We do not return photocopies or facsimiles, unless you specifically ask us to do so.

If you have internet access, you can send your scanned documents to us through My Account. This online service offers secure, quick, and easy access to manage your income tax and benefit information. For more information, go to www.cra.gc.ca/reviews and click on 11 Submitting documents electronically…

You can fax your reply to the Tl Processing Review Section at 705-669-2198. Please note, we are not responsible for misdirected, incomplete, or illegible faxes.

You can mail your reply to the Tl Processing Review Section, Canada Revenue Agency, Post Office Box 20006, Sudbury ON       P3A OA6. We have enclosed a mailing label for your convenience.

Taxpayer information is confidential. If you want us to deal with a person representing you, we must have a letter of authorization or Form T1013, Authorizing or Cancelling a Representative, on file. You do not need to complete a new form every year. For more information, go to www.cra.gc.ca/individuals and click on “Authorize or cancel a representative.”

If you have questions about this letter, call 705-671-0333 for local calls or 1-800-588-8013 for long-distance calls. Our telephone agents are available Monday to Friday (except holidays) from 8:15a.m. to 4:30p.m., Eastern time. To learn more about our review programs, go to www.cra.gc.ca/reviews.



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©2011 Miles MacFarlane