What's new for other employment expenses

Deduction for tools for tradespeople and apprentice mechanics

For 2023 and later years, the maximum employment deduction for tradespeople’s tools has increased from $500 to $1,000.

As a result of this change, eligible tool costs under the apprentice mechanics' tools deduction would be those that are more than the greater of: 

• the combined amount of the increased deduction for tradespeople’s tool expenses ($1,000) and the Canada employment amount ($1,368 in 2023) 
• 5% of the taxpayer’s income earned as an apprentice mechanic (including from apprenticeship grants) 

Employer declaration

For 2023 and later years, employers are not required to provide a handwritten signature on Form T2200, Declaration of Conditions of Employment, and T1223, Clergy Residence Deduction. The CRA will also accept an electronic signature on each of these forms.

Temporary flat rate method

The temporary flat rate method does not apply to 2023. Therefore, taxpayers looking to claim home office expenses for 2023 will be required to use the detailed method and get a completed Form T2200, Declaration of Conditions of Employment, from their employer.