Employment Deductions (T4 Employees)
| Deduction | Who Qualifies | Line | Max Amount |
|---|
| RRSP contributions | Anyone with contribution room | 20800 | 18% of income (max ~$32,490) |
| Union/professional dues | If required for employment | 21200 | Actual amount |
| Home office (flat rate) | WFH employees | 22900 | $2/day, max $500 |
| Home office (detailed) | WFH with T2200 form | 22900 | Actual expenses |
| Employment expenses | With T2200 from employer | Various | Actual expenses |
| Moving expenses | Moved 40+ km closer to work/school | 21900 | Actual costs |
| Childcare expenses | Lower-income spouse | 21400 | $8,000-$11,000/child |
| Legal fees for employment income | To collect wages/pension owed | 23200 | Actual amount |
| Tool expenses (tradesperson) | Apprentice/tradesperson | 22900 | Over $1,000 threshold |
Self-Employed / Business Deductions
| Deduction | Details | Limit |
|---|
| Home office | Proportional to business use | % of home used |
| Vehicle expenses | Business portion of gas, insurance, repairs | Log required |
| Business supplies | Office supplies, software, subscriptions | Actual |
| Advertising/marketing | Website, ads, business cards | Actual |
| Professional development | Courses, conferences, books | Actual |
| Meals & entertainment | Client meals, business events | 50% of cost |
| Insurance | Business liability, E&O | Actual |
| Phone & internet | Business portion | Actual |
| Bad debts | Uncollectible invoices | Actual |
| Capital cost allowance | Equipment, computers, furniture | CCA rate |
| CPP premiums (employer portion) | Self-employed pay both halves | 50% deductible |
Investment Deductions
| Deduction | Details | Limit |
|---|
| Carrying charges | Investment counsel fees, safe deposit box | Actual (non-registered only) |
| Interest on money borrowed to invest | Loan interest for non-reg investments | Actual |
| Capital losses | Offset capital gains | Losses carried forward indefinitely |
| Allowable business investment loss (ABIL) | Loss on small business investment | 50% deductible |
| Foreign tax credit | Tax paid to foreign governments | Up to Canadian tax on that income |
Non-Refundable Tax Credits
| Credit | Amount/Rate | Line |
|---|
| Basic personal amount | $16,129 (2025) × 15% | 30000 |
| Spouse/partner amount | Up to $16,129 × 15% | 30300 |
| Age amount (65+) | Up to $8,790 × 15% | 30100 |
| Pension income amount | Up to $2,000 × 15% | 31400 |
| Disability amount | $9,872 × 15% | 31600 |
| Canada caregiver amount | Up to $8,375 × 15% | 30425/30450 |
| Medical expenses | Expenses > 3% of income (or $2,759) | 33099 |
| Charitable donations | 15% first $200, 29-33% above | 34900 |
| Tuition (T2202) | Actual tuition × 15% | 32300 |
| Student loan interest | Interest paid × 15% | 31900 |
| Digital news subscription | Up to $500 × 15% | 31350 |
| Home accessibility | Up to $20,000 × 15% (seniors/disabled) | 31285 |
| First-time home buyers’ credit | $10,000 × 15% = $1,500 | 31270 |
| Volunteer firefighter/SAR | $3,000 × 15% = $450 | 31220/31240 |
Medical Expenses Checklist
| Expense | Claimable? |
|---|
| Prescription drugs | ✅ Yes |
| Dental work | ✅ Yes |
| Eye exams and glasses | ✅ Yes |
| Hearing aids | ✅ Yes |
| Private health insurance premiums | ✅ Yes |
| Travel for medical care (40+ km) | ✅ Yes |
| Wheelchair, walker, medical devices | ✅ Yes |
| Attendant care | ✅ Yes |
| Fertility treatments | ✅ Yes |
| Cosmetic surgery | ❌ No (unless medically necessary) |
| Over-the-counter vitamins | ❌ No |
| Gym membership | ❌ No |
Threshold: Claim expenses exceeding the lesser of 3% of net income or ~$2,759.
Moving Expenses Checklist
Must move 40+ km closer to new work or school location.
| Expense | Claimable? |
|---|
| Moving company costs | ✅ Yes |
| Travel (gas, meals, hotel) | ✅ Yes |
| Temporary lodging (up to 15 days) | ✅ Yes |
| Lease cancellation fees | ✅ Yes |
| Real estate commission (selling old home) | ✅ Yes |
| Land transfer tax (new home) | ✅ Yes |
| Legal fees (buy/sell) | ✅ Yes |
| Utility hookup/disconnect | ✅ Yes |
| Cost of maintaining vacant old home | ✅ Up to $5,000 |
| Storage costs | ✅ Yes |
Charitable Donations
| Donation Level | Federal Credit Rate |
|---|
| First $200 | 15% |
| Amount over $200 | 29% |
| Over $200 (income above $240K) | 33% |
Example: $5,000 donation = ($200 × 15%) + ($4,800 × 29%) = $30 + $1,392 = $1,422 federal credit + provincial.
Donation Strategies
| Strategy | Benefit |
|---|
| Combine spouse donations | Get past the $200 threshold faster |
| Donate publicly traded securities | No capital gains tax on donation |
| Carry forward donations | Can claim up to 5 years later |
| Claim first-time donor super credit | Enhanced credit for first-time donors |
Commonly Missed Deductions
| Often Missed | Who Should Check |
|---|
| Medical expenses over threshold | Anyone with uncovered medical costs |
| Moving expenses | Anyone who relocated for work/school |
| Home office (flat rate method) | WFH employees |
| Carrying charges | Non-registered investors |
| Northern residents deduction | Anyone in prescribed northern zones |
| Disability tax credit | Anyone with prolonged impairment |
| Canada training credit | Ages 26-65 with T4 income |
| Climate action incentive | Rural supplement (auto for some) |
Record Keeping
| Record Type | Keep For |
|---|
| Tax returns | 6 years |
| Receipts and slips | 6 years |
| Investment records (ACB) | 6 years after selling |
| RRSP contribution receipts | 6 years |
| Home purchase/sale docs | 6 years after sale |
| Vehicle logbook (business) | 6 years |