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...

Saving money is great — but saving the right way can make a big difference at tax time. In Canada, three popular accounts help you grow your money while reducing taxes: TFSA RRSP FHSA While they all allow tax-free growth , each one has a different purpose. Here’s how they work — in simple terms. Comparison of TFSA, RRSP & FHSA Bookmark this page or save this graphic  as a quick reference for TFSA, RRSP & FHSA TFSA — Tax-Free Savings Account What it’s for A TFSA is best for flexible savings . You can use it for emergencies, investing, travel, or future plans. Key features Money grows tax-free Withdrawals are tax-free Take money out anytime, for any reason Contribution rules Annual limit set by the government Unused room carries forward Withdrawals create new room in future years Tax impact Contributions are not deductible Withdrawals do not affect your taxes Best for Beginners Emergency savings Short- and medium-term goals RRSP — Registered Retirement Savings Plan What it’...