Claiming employment expenses in Canada: What you need to know

Claiming employment expenses in Canada can be a valuable tax-saving opportunity, but there are strict rules around what’s allowed. In this video, I explain which deductions employees—especially commission salespeople and those working from home—can claim and which ones they can’t. If you want to make sure you’re maximizing your deductions while staying compliant, watch the video and get the key details.

Video Transcript: Claiming employment expenses in Canada

Employment expenses can be an important part of the tax deductions for a number of taxpayers.

Unquestionably, I’d rather see business expenses instead of employment expenses, simply because businesses have access to far more deductions. However, for employees, automobile expenses may be the biggest deduction available. Some limited home office expenses are allowed, but notably, you cannot deduct a portion of the interest on your home if you own it. If you’re renting, the situation may be slightly better. (See the Personal Tax Checklists to record all of these expenses.)

For commission salespeople, additional deductions may be available, but they are limited—your total deductions cannot exceed your total commission income for the year.

Take a look at what you can and cannot claim. Every little bit helps!

I’m George Dube, saving the world from tax, one bow tie at a time®.

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Resources

For additional resources related to how to maximize tax deductions, see:

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Remember – circumstances are unique! This information is summary in nature. Seek out advice from your tax advisor about your specific situation.