Have you recently become an apprentice for one of the trades or other? If so, you may be able to get some tax incentives. You can get a credit for the tools you have to buy, as well as the tuition and books you need to do the schooling for your trade.
Tradesperson’s Tools deduction
If you have purchased eligible tools to earn employment income as a tradesperson or apprentice, you may be able to deduct their cost, including any goods and services tax (GST), provincial sales tax (PST) or harmonized sales tax (HST) you paid.
An eligible tool is a tool (including associated equipment such as a toolbox) that:
Maximum deduction for eligible tools is the lesser of:
a) $500; and
b) the amount, if any, determined by the formula
A − $1,161 where
A = the lesser of:
1. the total cost of eligible tools that you bought in 2016; and
2. your income from employment as a tradesperson for the year
You are an eligible apprentice mechanic if you:
Eligible Apprentice Mechanic
As an eligible apprentice mechanic, you must first calculate the tradesperson's tools deduction (above), if any, that you qualify for.
You are an eligible apprentice mechanic if you:
An eligible tool is a tool (including associated equipment such as a toolbox) that:
Tuition Tax Credit and licensing examination fees
If you have eligible tuition fees, as well as certain licencing examination fees, you may be able to claim them on your income tax and benefits return.
Examination fees paid to an educational institution, professional association, provincial ministry or other similar institution, to take an occupational, tradeor professional examination that is required to obtain a professional status recognized by federal or provincial statute, or to be licensed or certified as a tradesperson, to allow you to practice the profession or trade in Canada, may be eligible for the tuition tax credit. You should be provided with a receipt to substantiate your eligible exam fees. To view the information that should be contained in the receipt go to example of a receipt for licensing examination fee.
If you have more than one tax certificate, you can claim all amounts that are more than $100.
You cannot claim the tuition amount on your tax certificate if any of the following applies to you:
Education amount
You will have received a tax certificate from your educational institution indicating the number of months you were enrolled full-time (Box C) or part-time (Box B).
Full-time – Box C
For tax years prior to 2017, multiply $400 by the number of months indicated in Box C.
You can also claim the full-time amount if one of the following applies to you:
Part-time – Box B
For tax years prior to 2017, multiply $120 times the number of months indicated in Box B.
You cannot claim the education amount if you:
Textbook amount
You can claim only one textbook amount for each month that you qualify for the full-time or the part-time education amounts.
You can claim the textbook amount only if you can claim the education amount.
The amount is:
This credit may disappear after 2017 tax year.
As an apprentice you have some great deductions you can claim against your income, and you should definitely take advantage of them come tax time. Just remember to keep receipts, and you have to have your employer sign a T2200 Declaration of Conditions of Employment.
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