As a Canadian digital nomad, you may be eligible for various tax deductions and credits that can help reduce the amount of tax you owe. Here's a breakdown of some key deductions and credits you might consider:
Employment Expenses
If you're a digital nomad working remotely for an employer, you might be able to claim certain employment expenses. These could include costs related to a home office, such as utilities and rent, provided you meet the conditions set by the Canada Revenue Agency (CRA). To claim these expenses, you'll need a T2200 form completed by your employer, which certifies that you are required to pay for these expenses as part of your job1.
Digital News Subscription Tax Credit
You can also take advantage of the digital news subscription tax credit, which is a non-refundable tax credit for amounts paid to a qualified Canadian journalism organization for digital news subscriptions. This credit applies to subscriptions paid after 2019 and before 2025. The maximum credit is calculated by multiplying the lowest personal income tax rate (15%) by the total amount paid for qualifying subscriptions, up to $500. If you share a subscription with someone else, like a spouse or roommate, you can split the credit, as long as the total claimed does not exceed the maximum allowable amount2.
Other Deductions and Credits
It's important to keep detailed records and receipts for any expenses you plan to claim, as the CRA may request to see them. For more detailed information on these deductions and credits, you can visit the CRA's official website.
Citations
- https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses.html
- https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/deductions-credits-expenses/digital-news-subscription.html