I cannot get the tradespersons tool allowance amount to populate? My son bought tools $911.48, income earned $33104.76. I think it should allow him to deduct $500? I have entered the tool amt in HST column & income below that. What am I doing wrong?
The calculation for trades tool allowance also includes the Canada employment amount, so the cost of the tools has to be greater than $1,146.
Per CRA:
Maximum deduction for eligible tools is the lesser of:
a) $500; and
b) the amount, if any, determined by the formula
A − $1,146 where
A = the lesser of:
1. the total cost of eligible tools that you bought in 2015; and
2. your income from employment as a tradesperson for the year
plus the amount you received in 2015 under the Apprenticeship Incentive Grant and the Apprenticeship Completion Grant programs;
minus the amount of any Apprenticeship Incentive Grant and Apprenticeship Completion Grant overpayments that you had to repay in 2015.
The calculation for trades tool allowance also includes the Canada employment amount, so the cost of the tools has to be greater than $1,146.
Per CRA:
Maximum deduction for eligible tools is the lesser of:
a) $500; and
b) the amount, if any, determined by the formula
A − $1,146 where
A = the lesser of:
1. the total cost of eligible tools that you bought in 2015; and
2. your income from employment as a tradesperson for the year
plus the amount you received in 2015 under the Apprenticeship Incentive Grant and the Apprenticeship Completion Grant programs;
minus the amount of any Apprenticeship Incentive Grant and Apprenticeship Completion Grant overpayments that you had to repay in 2015.