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 |