Canadian Tax Preparation & Bookkeeping Tips

Employment Expenses in Canada – Employee Tax Deductions Employees may be able to deduct certain work-related expenses if CRA conditions are met. Many Canadian employees don’t realize they may be able to deduct certain employment expenses on their personal tax return. When claimed correctly, these deductions can reduce your taxable income and lower the amount of tax you owe. However, employment expenses are not automatic . The rules are strict, documentation is required, and eligibility depends on your job duties and how you are paid. This guide explains the basics of employment expenses in Canada, based on rules from the Canada Revenue Agency (CRA) . What Are Employment Expenses? Employment expenses are out-of-pocket costs that employees are required to pay to earn employment income and are not reimbursed by their employer . Examples may include: Work supplies Vehicle expenses Home office costs Meals (in limited situations) Professional fees To claim these expenses, you must meet CRA...

  Medical travel expenses you can claim depend on how far you travel for care. Sometimes getting medical care means more than just paying for the appointment itself. If you had to travel a distance to receive medical treatment , some of those travel and transportation costs may be claimed as eligible   medical expenses on your tax return. This post explains, in plain language: When medical travel costs qualify How distance affects what you can claim Which expenses are allowed How meals and vehicle costs are calculated What records you should keep When Can You Claim Medical Travel Expenses? You may be able to claim travel and transportation costs only if all of the following apply : The medical service was not available near your home You travelled to get medical care for yourself or an eligible dependent The trip was made using a reasonably direct route The expenses were not reimbursed by insurance or another program If these conditions aren’t met, the travel costs generally...

  The Disability Tax Credit and medical expenses   The Disability Tax Credit (DTC) and medical expenses often go hand in hand — but when attendant care is involved, the rules can get confusing very quickly. Many people are told: “You can’t claim the DTC and attendant care.” That statement is not always true . In reality, the CRA allows different ways to claim attendant care , depending on: The type of facility or care The specific expense Whether the DTC is claimed Whether a reduced or full amount of attendant care is being claimed This guide explains the relationship in plain, everyday language so you understand the options — without getting lost in technical terms. What Is the Disability Tax Credit? The Disability Tax Credit is a non-refundable tax credit meant to help people who have a severe and prolonged impairment that affects daily living. Key points: You must be approved by the CRA Approval is based on Form T2201 The credit reduces tax payable, but does not crea...