You can deduct certain expenses (including any GST/HST) you paid to earn employment income. You can do this only if your employment contract required you to pay the expenses and you did not receive an allowance for them, or the allowance you received is included in your income.
All employees can deduct accounting and legal fees that you paid in order to collect salary, wages, or pension benefits.
Note: Most employees cannot claim employment expenses. You cannot deduct the cost of travel to and from work, or other expenses, such as most tools and clothing.
You have to keep records for each year you claim expenses. You can deduct salary or wages you reported as income for 2022 or a previous year, if you repaid them in 2022. This includes amounts you repaid for a period when you were entitled to receive wage-loss replacement benefits or workers’ compensation benefits. However, you cannot deduct more than the income you received when you did not perform the duties of your employment.
Employment expenses
If your employer requires you to pay them to earn your employment income, you might be able to claim certain job-related expenses. If you were reimbursed or received an allowance for these costs, you can only claim them if the allowance or reimbursement is included in your income. These expenses are claimed on form T777, Statement of Employment Expenses.
Salaried employees
You can claim:
- allowable motor vehicle expenses
- parking costs
- supplies
- travelling expenses
- other expenses, including salaries, office rent
- work space in the home expenses
Commission employees
You can claim:
- Advertising and promotion expenses
- Allowable motor vehicle expenses
- Capital cost allowance
- Entertainment, food, beverages, and lodging
- Parking costs
- Supplies. Supplies include items such as pens, pencils, paper clips, stationery, stamps, street maps, and directories. Supplies do not include items such as briefcases or calculators.
- Other expenses including licences, bonding premiums, medical underwriting fees, office rent, salaries, training costs, and travel fare. If you lease computers, cellular telephones, fax machines, or other equipment, you can deduct the percentage of the lease costs that reasonably relates to earning your commission income.
- Work space in the home.
Transport employees
You can claim everything on the salaried employees’ list. You may also be able to claim the cost of meals and lodging.
Forestry workers
You can claim everything on the salaried employees’ list.
As well, you can deduct expenses for buying and using a power saw (including a chain saw or tree trimmer) if you had to pay for them under your contract of employment and if your employer will not be reimbursing you.
Employed artists and musicians
You can claim everything on the salaried employees list.
If your employer requires you to provide your own musical instrument, you can deduct expenses you paid that relate to the musical instrument.
Employed tradespersons
You can claim everything on the salaried employees list.
As well, you might be able to deduct the cost of eligible tools and associated equipment that you bought in the tax year to earn employment income as a tradesperson.