Are you an employee, and does your employer require you to pay expenses to earn your employment income?
If so, you can calculate your expenses and claim them as deductions!
You must have a signed declaration form from your employer to claim your expenses.
You cannot deduct the cost of travel to and from work or clothing purchased for work, as these are considered personal expenses.
You cannot deduct any expenses reimbursed by your employer.
You must keep records of all expenses you claim each year.
What's new for 2024?
The CRA continues to support claims for home office expenses if you worked from home due to COVID-19 in 2020 and/or 2021. The temporary flat rate method allows you to deduct $2 per day for up to 200 days. No receipts or supporting documents are required for this flat rate deduction.
Additionally, the CRA updated the rules for home office claims in 2024. Employees who work from home due to their employer’s instructions may be eligible to claim additional expenses for their home office setup, such as equipment and supplies.
How do I claim my employment expenses?
If you incurred expenses to earn salary or commission income:
You will need Form T2200 (Declaration of Conditions of Employment) signed by your employer.
You must complete Form T777 to claim your expenses. Expenses may include:
Food (You can only deduct 50% of meal costs)
Lodging expenses
Parking
Stationery and office supplies
Telecommunications
Office rent
Motor vehicle expenses (fuel, maintenance, insurance, license fees, capital cost allowance, interest, and leasing costs)
Home office expenses (updated for 2024)
You can claim the total on line 22900
Special cases:
Apprentice mechanics and tradespeople: If you are an apprentice mechanic or a tradesperson, you will need Form T2200 signed by your employer. You can deduct eligible tools on line 22900.
Transport employees: If you are an employee of a transport business (such as an airline, railway, bus, or trucking company), you can deduct board and lodging expenses using Form TL2, signed by your employer.
You can also claim 50% of meal costs for regular truck drivers and 80% for long-haul truck drivers.
You can calculate your expenses using the detailed method or the simplified method and claim it on line 22900.
Detailed method: Keep a record book with dates, times, locations, and receipts for meals and lodging.
Simplified method: Keep trip records and vouchers for lodging, with a flat rate of $17 per meal in Canada and $34 in the USA (up to 3 meals per day).
Employed artists: You will need Form T2200 signed by your employer. You can deduct the cost of musical instruments (including maintenance, rental, and insurance) on line 22900.
Forestry workers: If you are in forestry operations, you can deduct costs for power saws, fuel, and repairs on line 22900.
Clergy members: If you are a member of the clergy, a regular minister, or a member of a religious order, you can claim the clergy residence deduction on line 23100. Complete parts A and C of Form T1223, and your employer must complete part B.
It's essential to know what work-related expenses can and cannot be deducted. At Softron Tax, we can help you maximize your tax savings!
(Refer to guide T4044 for more details).
