Employment Expenses Deduction: Who Qualifies and What You Get
Learn how to deduct your work-related costs from your taxable income if your employer requires you to pay for your own professional expenses.
This scheme allows certain employees to reduce their taxable income by claiming the costs they incur while performing their job duties.
Who it's for
This is for employees who are required by their employer to pay for their own work-related expenses.
What you get
You can claim a deduction for your eligible professional costs. This deduction lowers your total taxable income, which may reduce the amount of tax you owe.
What it costs you
To claim these expenses, you must obtain a specific form (T2200) that has been signed by your employer. You will also need to keep all relevant receipts and documentation for your work expenses.
The catch to know
A common hurdle is that some employers are hesitant to sign the required T2200 form. It is a good idea to clarify with a potential employer whether they are willing to sign this document before you accept a job.
How to apply
- Confirm with your employer that you are required to pay for your own work expenses.
- Request that your employer sign a T2200 form to certify these requirements.
- Collect and save all receipts for the professional costs you wish to claim.
- Report these expenses when you file your annual tax return.