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...

If you use your personal vehicle for work or business, you may be able to claim vehicle ( mileage ) expenses on your tax return . The Canada Revenue Agency (CRA) requires a detailed mileage log to support this claim. Using a mileage tracking app can make this easier and help you stay organized. However, if you are an employee, you need a T2200 Declaration of Conditions of Employment from  your employer in order to report expenses on your tax return. Does CRA Accept Mileage Apps? CRA does not officially approve specific apps. However, CRA does accept digital mileage logs as long as they include all required details. Many commonly used mileage apps are designed to meet these requirements. What Information Must Your Mileage Log Include? Date of each trip Start and end location Purpose of the trip (work-related) Kilometers driven Business vs personal use Good mileage apps automatically record most of this information and allow you to export reports if CRA asks for proof. Rec...