Claiming Employee Expenses in Canada: What Employees Can Deduct

Many employees don’t realize they may be able to deduct work-related expenses — while others claim incorrectly and face CRA reviews.

Understanding which employee expenses are deductible can help reduce your taxable income and avoid problems with the Canada Revenue Agency (CRA). In this article, we explain when employees can claim expenses, what types of expenses are allowed, and how Wado Tax helps ensure compliance.

Can Employees Claim Expenses?

Yes, but only if:

• Your employer requires you to pay your own work expenses
• You are not reimbursed by your employer
• You have a signed Form T2200 from your employer

Without meeting these conditions, CRA may deny your expense claims.

Common Employee Expenses

• Vehicle Expenses: Fuel, insurance, and maintenance for business use.
• Home Office Expenses: A portion of utilities and workspace costs.
• Tools and Supplies: Equipment required for your job.
• Phone and Internet: Work-related portion only.

Why Form T2200 Is Important

Form T2200 confirms that your employer requires you to pay certain expenses out of pocket. Without a signed T2200, CRA may deny your claim during a review or audit.

Common Employee Mistakes

• Claiming expenses without a T2200
• Overclaiming expenses
• Poor documentation and missing receipts

How Wado Tax Helps Employees

We:

• Review your eligibility
• Ensure CRA compliance
• Protect you from reassessments

Frequently Asked Questions