Eligible Employment Expense Claim
If your employer has provided you with a T2200 form then you are eligible to deduct some expenses related to your employment. Please contact us to find out how we can help you navigate what you can deduct on your tax return.
CRA - Canada Revenue Agency Employment Expense Guide
On the Canada Revenue Agency website, you will find 10 chapters of information on what is and isn’t deductible as an employment expense.
They have a guide that you can refer to if you are an employee and your employer requires you to pay expenses to earn your employment income. The guide will help you calculate the expenses you can deduct. It also gives you all the information you need to claim the employee goods and services tax/harmonized sales tax (GST/HST) rebate.
If you qualify, there are many deductible items but items like clothing, tools and the cost of getting you to work or back are not allowed. These types of expenses are deemed to be personal expenses.
Work From Home Workers During Covid-19
During Covid-19 many people worked from home. If you are one of these people you should check with our team to see if you qualify to deduct home office expenses (work-space-in-the-home expenses, office supplies, and other expenses such as employment use of a cell phone, long-distance calls for employment purposes, etc.).
You can’t claim expenses that are covered by your employer. (Example; You cannot deduct home office expenses if all of your expenses were or will be reimbursed by your employer)
If you qualify as one of these employees working at home due to COVID-19 the eligible expenses include:
- rent paid for a house or apartment where you live
- electricity, heat, water or the utility portion of your condominium fees
- home internet access fees
- maintenance (minor repairs, cleaning supplies, light bulbs, paint, etc.)
- supplies (stationery items, pens, folders, sticky notes, postage, toner, ink cartridge, etc.)
- employment use of a basic cell phone service plan
- long-distance calls for employment purposes
Employees Earning Commission Income
If you are a commission employee, you can also claim expenses that reasonably relate to earning commission income for the following:
- property taxes
- home insurance
- lease of a cell phone, computer, laptop, tablet, fax machine, etc.
There are other types of employee compensation packages and one of those is an employee who earns commission income. Employees who sell goods or negotiate contracts for an employer can deduct some of the amounts they paid to earn commission income. Should you fall into this category, then you should check with our team to make sure you are claiming all your eligible expenses to reduce the amount of taxes you are required to pay.
Check With Our Experts On Eligible Deductions
It’s impossible to cover all the scenarios that might present themselves in this short article, however, we have qualified staff to ensure you are paying as little tax as possible using the tax guidelines set out by Canada Revenue Agency.
Call us to see what deductions you are eligible for (289) 240-3250.
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At Dana Snedden CPA Professional Corporation, our Accountants offer Small Business Accounting Services, Personal and Corporate Tax Services, Bookkeeping, Payroll, and other Accounting Services to clients in Oshawa, Whitby, Clarington, Courtice, Ajax, Pickering, Bowmanville, Newcastle and most of Southern Ontario.
