What Work Related Costs Can I Claim as an Employee?

Being an employee has certain tax benefits. In fact, you can claim certain costs of going to work against your taxes. This will reduce your tax bill.

1. Canada Employment Amount
Anyone who has a job can claim the Canada Employment Amount. This is a tax credit that should be claimed on your tax return. The amount of the credit is a maximum of $1,127.

2. Amount for Public Transit Passes
If you take public transit to work, you can claim a tax credit for the costs paid to purchase public transit passes. Make sure that you keep all of your receipts and passes in case you are audited. Eligible transit passes include:

• Weekly passes, if you buy them for 4 weeks or more in a row, and if each pass allows for unlimited travel for at least 5 days
• Monthly and yearly transit passes for unlimited travel
• Electronic payment cards

3. Medical Expenses for Employees
Medical expenses are one of the most missed tax credits each year. Medical expenses include premiums paid by you for medical benefits that are part of a group benefits plan. The premiums are normally deducted from each paycheck, which is why they are easy to overlook.

The total amount of premiums that you paid for medical benefits should be shown on your paystubs. So keep your pay-stubs in case the CRA asks to see them in the event of an audit.

4. Charitable Donations on the T4 Slip
You can receive a tax credit for charitable donations made to registered charities. If you have given a donation at work, the amount of the donation will be shown on Box 46 of your T4 slip.

In addition, you can claim donations made outside of work, so long as they are made to registered charities. Remember to provide all of your donation slips to your accountant.

So Here’s the Tip:
Claim the costs of going to work on your tax return, and maximize your tax refund.

ABOUT THE AUTHOR

ALLAN MADAN

CPA, CA

Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.

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