Income Adjustments

ADJUSTMENTS WITH
RESPECT TO EMPLOYED
INDIVIDUALS

Items in Income Tax Act paragraphs 8(1)(c) to (j) and (n) to (q)

This paragraph of the Income Tax Act enumerates certain expenses that an employee may deduct from his income. The ones which will be deducted from income under the new child support system are as follows:

(c) Clergyman’s residence – certain allowable expenses

(d) Teacher’s exchange fund contribution – of limited application to most teachers

(e) Expenses of railway employees –

(f) Sales expenses – These expenses apply only to a certain type of sales person.

(g) Transport employee’s expenses – Food and lodging expenses not reimbursed for certain employees as described.

(h) Travel expenses – An employee on the road who is not reimbursed can take these write offs.

(h.1) Motor vehicle travel expenses – Auto expenses not otherwise reimbursed for some employees.

(i) Dues and other expenses of performing duties – Where not otherwise reimbursed, such things as professional membership dues, trade union dues (even where the employer deducted and paid them over to the union).

(j) Motor vehicle and aircraft costs – This covers interest and capital costs for those eligible under (f) (h) or (h.1).

(n) Salary Reimbursement – The taxpayer had to repay some money to his employer. This can be deducted.

(n.1) Reimbursement of disability payments – [This is a pending amendment.]

(o) Forfeited Amounts – Unpaid deferred amounts previously included in income are deducted here.

(o.1) same as above

(p) Musical instrument costs – Various allowable expenses and deductions for musicians.

(q) Artists’ employment expenses – True artists can deduct some expenses to maximums as described in this paragraph of the ITA.