keep this website free for you. TaxTips.ca does
not research or endorse any product or service appearing in
ads on this site.
Before making a major financial decision you
should consult a qualified professional.
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.
Some other expenses may be deducted from employment income:
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.
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.