Taxpayers are allowed to write off certain expenses they incur to maintain their jobs, and claiming annual professional or union dues on your income tax return helps you to lower your taxable income and reduce your tax burden.
Membership Dues for Trade Unions
Membership dues for trade unions or public servant associations may be deducted on income tax returns.
Professionals who are required by law to pay dues for professional boards or parity or advisory committees may also deduct those fees. Only union membership dues are deductible, and union members may not deduct initiation fees, licenses or other charges. The amount taxpayers may deduct is shown on their T4-form, Statement of Remuneration Paid.
Statement of Remuneration Paid
At the beginning of every year, employers must issue their employees a T4.
This Statement of Remuneration Paid shows employment income and tax deducted during the previous year, as well as several other items. Box 44 of this slip reports union dues paid. To claim this expense, report this amount on line 212 of your income tax return.
Receipts of Union Dues
In addition to receiving form-T4 from your employer, you may also receive a receipt of union dues paid from your union.
Do not add the amounts shown on your receipts to the amount shown on your T4. Doing that inadvertently doubles the amount you should claim. However, the receipt indicates whether GST or HST has been paid on those dues. If GST or HST has been paid, you may be entitled to a tax rebate.
GST/HST Rebate
If your employer is a GST/HST registrant, you may be eligible for a refund of the portion of your union dues that were related to GST or HST.
The Canada Revenue Agency refunds GST at a rate of 5/105 and HST at a rate of 12/112, 13/113, 14/114 or 15/115, depending on the rate applied to your dues. For example, if you paid $200 in dues and GST was included in that amount, you qualify for a rebate equal to $200 times 5/105 or $9.52. To calculate your rebate, complete Form GST370 Employee and Partner GST/HST Rebate Application.
If you receive a GST/HST rebate, you must claim your rebate as earnings on the following year’s tax return. For example, if you file a 2018 tax return and receive a GST rebate in 2019, you need to report the rebate when you file your taxes for 2019.
Other Qualifying Expenses
Professionals who are required by law to maintain professional or malpractice liability insurance may also deduct their premiums on line 212 of their income tax return. For example, if you are an accountant who is required by law to maintain liability insurance, you may deduct the cost of your premiums on your income tax return. However, if you are not legally required to have liability insurance but carry it anyway, you cannot deduct the cost of your premiums.
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