Simplified Method for Claiming Meal and Vehicle Travel Expenses

When it comes to claiming travel expenses on your taxes, the process doesn’t have to be complicated. Whether you’re moving, or traveling for medical reasons, there are two easy ways to calculate what you can deduct: the detailed method and the simplified method.

Let’s break them down in simple terms so you can make the best choice for your situation.

What are the two methods that I can use to claim travel expenses?

You have the option to use either:

• The Detailed Method: Keep every receipt and claim exactly what you spent.
• The Simplified Method: Skip saving receipts and instead claim set amounts provided by the CRA (way, way easier).

Both methods can help you reduce your tax bill — it just depends on how much paperwork you’re willing to deal with!

How can I claim Meal Expenses for my move or for medical travel?

1. Using the Detailed Method

• If you like being exact, the detailed method lets you claim the full amount you spent on meals — but you’ll need to keep all your receipts as proof.

2. Using the Simplified Method

• If keeping track of every meal sounds like a hassle, the simplified method is your friend. For the 2024 tax year, you can claim:
  • $23 per meal, up to $69 per day (no receipts required!).

That’s it! Although receipts aren’t necessary with this method, it’s still a good idea to keep some records just in case the CRA asks for backup.

How can I claim vehicle expenses for my move or for medical travel?

1. Using the Detailed Method

If you pick the detailed method for vehicle expenses, you’ll need to:

• Save receipts for everything: fuel, oil changes, insurance, maintenance, etc.
• Keep track of how many kilometers you drove during the year.
• Track how many of those kilometers were for moving, medical appointments, or travel related to living in a northern area.

You’ll claim a portion of your total vehicle costs based on the number of kilometers driven for these reasons.

Example:
If you drove 10,000 km in a year and 5,000 km were for your move, you can claim 50% of your vehicle expenses.

2. Using the Simplified Method

Prefer an easier way? With the simplified method, you don’t need receipts for every little thing. Instead, you are just:

• Track the kilometers you drove for eligible trips.
• Multiply your kilometers by the CRA’s set rate based on where your travel started.

Here’s the current rate per province and territory for 2024:

Can employees claim travel expenses when they travel for work?

Yes! Employees who are required to travel as a condition of their employment may also deduct auto and meal expenses when they are required to travel for work, however they must use the detailed method for both types of expenses. Note that in order to claim these expenses against your employment income, your employer must complete and sign form T2200 Declaration of Conditions of Employment, and provide the signed form to you for your records. Remember to reduce the amount of your claim by the amount your employer reimbursed you for that was not included as a taxable benefit on your T4.

Employees who are reimbursed by their employers for their auto expenses and meals are not required to include these reimbursements in their income as long as the reimbursement rates are in line with the CRA’s allowed rates, which can be found in our blog here. This is by far the simplest way to handle work related travel expenses, however, may result in a lower expense claim in some cases.

Final Thoughts

Choosing between the detailed and simplified method is really about what’s easiest for you.
If you’re great at keeping receipts and want to claim every dollar you spent, the detailed method could get you a bigger deduction.

If you’d rather skip the paperwork and still claim a solid amount, the simplified method is a stress-free option, however this option is not available for work related travel expenses, only when moving for work or traveling for medical reasons. To write off travel for medical reasons, make sure that you meet the criteria on the CRA’s website here.

Either way, keeping basic records (like kilometers driven or trip logs) is smart, just in case CRA wants to double-check your claim.

Need help making sure you’re claiming the right travel expenses? Reach out to us — we’re here to help make tax time a whole lot easier!

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