Fixing for a Refund on Your Tax Return © Can Stock Photo / kenhurst
By / Heidi Hofsta
As a skilled tradesperson, you build the houses where families live, the skyscrapers in the concrete jungles where people work, and the roads and bridges that get everyone where they need to go. The work you do benefits all Canadians. When it comes to your taxes, the Canada Revenue Agency (CRA) wants you to benefit, too. Know the tools of the trade to maximize your refund No matter your trade, you need to make sure you have the right tools for the job. If you bought new tools for work this year, claim the tradesperson’s tools deduction of up to $500. Your employer will need to certify that the tools being claimed were bought by you and are necessary for you to use directly in your work. You may also get a rebate on the goods and services tax/harmonized sales tax (GST/HST) you paid when you bought them. For information on tools expenses, go to canada.ca/taxes-trades. Are you part of a trade union? If you pay membership dues, keep your receipt and deduct the amount paid on your return. This includes any GST/HST you paid as part of your dues. For information, go to canada.ca and search for “Line 21200 – Annual union, professional, or like dues.” When someone asks “Who’s the boss?” you take pride in responding, because, well… it’s you! If you’re selfemployed, you may be able to deduct reasonable expenses
you paid to earn income, such as vehicle expenses, supplies needed to complete a job, and office space expenses. Did you convert part of your garage into a workspace for your business? When you use part of your home for business, you may be able deduct part of your maintenance costs such as heat, home insurance, electricity, and property taxes. To find out more, go to canada.ca/taxes-self-employed and select “Report business income and expenses.” If you’re self-employed you can also get up to speed on your tax obligations through the CRA’s Liaison Officer Service. Book a free in-person visit or group seminar online at canada. ca/cra-liaison-officer. Liaison officers will answer your taxrelated questions, discuss self-employed tax deductions, explain common tax errors, provide an overview of digital services to help with your taxes, and offer advice and help with setting up an effective bookkeeping system. You learned from the best in your trade. Now, you want to pass that knowledge to the next generation of tradespersons. If you hire an eligible apprentice working in an approved Red Seal trade, you may be able to claim the apprenticeship job creation tax credit. For each eligible apprentice, claim $2,000 or 10% of the eligible salary and wages payable in the year, whichever is less. Don’t need to use the whole credit amount this year? Carry the unused amount back three years or wallandceiling.ca » Spring 2020 » 9
