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Expenses that are paid to earn employment income are sometimes deductible,
including any GST/HST that was paid on them. This can only be done if your
employer requires you to pay the expenses, and either you didn't receive
reimbursement for the expenses, or the amount you did receive is included in
your income. Form T2200 must be completed by your employer in order to
claim employment expenses - see below.
Expenses that are NOT deductible include premiums paid for medical, dental,
group insurance, and emergency travel medical insurance. Some of these
items may be deductible as medical
expenses. Premiums paid for disability insurance coverage are also not
deductible, but if you eventually have to receive disability insurance, it may
be tax free if you have paid the premiums. See our article Disability
Insurance - Pay Your Own Premiums.
Employment Expenses in Detail
Employee work-space-in-home expenses
- includes info re working from home during the COVID-19 pandemic as well as
information re those still working at the regular place of business, but
possibly incurring additional expenses.
Some other expenses may be deducted as office or employment
legal expenses incurred to collect or
establish a right to amounts owed to the taxpayer that would be included in the
taxpayer's employment income when received. See the Canada Revenue Agency
(CRA) interpretation bulletin IT-99R5
Legal and Accounting Fees (Archived) - see link at bottom.
certain clergy residence rent (or fair
rental value for a residence owned by the taxpayer, the
taxpayer's spouse or common-law
partner) and utility costs.
See the CRA interpretation bulletin IT-141R
Clergy residence deduction (archived), and CRA web page Line
23100 Clergy residence deduction - see links at bottom.
teachers exchange fund contribution not exceeding $250 in a year
dues and other expenses of performing duties, as long as these are
not reimbursed to the taxpayer, including
annual union dues. See CRA Line
21200 Annual union, professional or like dues link at bottom. Union dues
in box 44 of your T4 slips will include any GST/HST paid, if
applicable. If you have a receipt for union dues from your union,
it will indicate if GST/HST was charged.
annual professional membership dues paid to maintain a
professional status recognized by statute. See CRA
interpretation bulletin IT-158R2
Employees' professional membership dues (Archived) - see link at bottom.
office rent, or salary paid to an assistant or substitute,
if the payment is required by the contract of employment
employer's CPP, EI or QPIP premiums paid on the salary of an
assistant or substitute
cost of supplies consumed directly in employment duties,
if the payment of these costs is required by the contract of
employee's registered pension plan
contributions. See CRA interpretation bulletin IT-167R6
Registered pension plans - employee's contributions - see link at bottom.
employee's contributions to a retirement compensation
arrangement. See CRA Guide T4041
Retirement compensation arrangements - see link at bottom.
salary reimbursement, or disability payment
forfeited amounts under a salary deferral arrangement
excess employees profit sharing plan (EPSP) amounts
forfeited amounts under an employees profit sharing
plan. See CRA interpretation bulletin IT-379R
Employees profit sharing plans - allocations to
beneficiaries (Archived) - see link at bottom.
Other employment expenses which may be deductible and are
explained in the CRA guide T4044
Employment Expenses (see link at bottom), include:
costs of power saws for employees
working in forestry operations
sales expenses of commission employees (complete a TD1X
form to have income tax deductions based on your net commission income after
Performing artists expenses:
musical instrument costs for taxpayer employed as a
musician. This includes maintenance, rental,
insurance, and capital cost allowance.
artists' employment expenses.
interpretation bulletin IT-525R
Performing Artists - see link at bottom.
In order to claim many of the above deductions, CRA form T2200,
Declaration of Conditions of Employment (see link at bottom), should be
completed by the employee and employer.
Statement of Employment Expenses (see link at bottom) must be completed, and the deductions are
claimed on line 22900 of the tax return.
The above deduction amounts will include GST/HST and any
provincial retail sales tax paid. You may be
eligible for a refund of the GST/HST included in the
costs. See Employee
and Partner GST/HST rebate on the GST/HST page.