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We often have the impression that freelancers are more spoiled than employees because they have the possibility of deducting various expenses in their taxes.
This perception is not entirely accurate and many freelancers lose very interesting deductions that are often thousands of dollars because they were simply unaware.
Although the rules are stricter, deductions for remote employees can are the expenses that allowed him/her to do his job while on the move.
We live in a blessed time when the Internet exists and the media makes working at a distance easier than ever. For example, many employers require their employees to maintain an office outside the employer’s office. And some of these expenses are deductible:
Interior utilities: You can deduct a part of the rent, electricity, heating. To do this, you must calculate the part occupied for commercial purposes against the total area. If, for example, the room where your office is located is 100 pcs and your entire home is 1000 pcs. You can include 10% of your expenses in your tax return.
Telephone, internet: Tax authorities, unfortunately, do not consider these expenses as eligible if you use your residential package. However, if you use your cell phone, you can deduct the portion used for the business, including the data.
Computer, telephone and other equipment: no matter how absurd, the purchase of any material is not eligible for your expenses, however, the rent is.
2) Use of personal vehicle for work
If the type of work you do requires that you move between different places on a regular basis, you can deduct your vehicle expenses.
Deductions for vehicle expenses may include:
Maintenance (repairs, oil changes, tires, etc)
If your employer has not reimbursed you for these expenses, you have no restrictions on the rates you can deduct.
However, there is an administrative restriction, the mileage book.
Your mileage book must show a detailed record of your trips and your business mileage.
Not keeping a record can expose you to the rejection of the expenses you claim and a fine of $200. Your mileage book must contain the following information:
Mileage at the beginning of the year (January 1)
End of the year mileage (December 31)
A detailed record of each trip for commercial purposes, that is. Departure address, arrival address, number of kilometers, reason for the trip.
3) Other eligible expenses
Travel expenses: if you have to move out of the municipality where your employer operates, you can deduct certain expenses, such as transportation costs (plane, train), meals and lodging expenses (hotel, Airbnb, motel) if your absence extends beyond 12 hours.
Supplies: any type of supplies that directly serve you to obtain labor income is deductible, such as stationery, stamps, pens, ink cartridges.
Accounting or legal fees: if you had to hire them to recover any overpaid tax.
GST/QST: If your employer is registered for GST/QST, you have the right to claim a refund of taxes paid for your expenses. Make sure your employer puts your tax numbers on your employment expense forms.
NOT ELIGIBLE, the clothes: we had the need to clarify this point, because it is a question that arises very frequently. Your clothing expenses are not eligible.
Finally, I hope that this has helped you to learn more about the tax deductions for remote employees. Always double-check the deductions and rates with your employer or agency.
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