How do I claim my 500$ benefit for tools as a tradeperson?

[aidanjkeenan]

I went through the panels, and entered the amount i paid in gst and hst taxable slots, and later on in the steps, the 500$ does not show up on the summary?

[JeffL-Intuit · Accepted solution]

Here are some details on Deduction for Tools and how it's calculated:
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/229/trds/tlddctn-eng.h...

As you indicated, you may be eligible for up to a $500 deduction.
To do this in TurboTax do the following:
- Go to the Profile Section
- Answer Yes to "did you work in 2014?"
- Check "I was employed"
- Answer Yes to "Did you have expenses related to your employment?"
- Check "I had employment expenses"
- Be sure to read the little Note that says you must have a T2200 from your employer to keep for your records in case the CRA asks for it.

- Now in the Income section, you'll be asked for Employment Expenses.
- Check "Other Employment Expenses"
- On the next page, you can enter the cost of your tools and a description under "Tradesperson's Tools Expense"

Be sure to enter the actual cost of your tools (as an example, a $3000 drill), not the credit you should receive.

Sorry for the long winded answer!  I just want to make sure you have all the information you need.

[aidanjkeenan]

Jeff! you're the man. I have entered the total cost of my tools. It was 525.07 So I entered that in both the gst and hst slots. Is this correct?

[JeffL-Intuit]

According to our help:
This cost includes any GST and provincial sales tax (PST), or HST, that you paid. You may be able to get a rebate of the GST/HST you paid.

Since you're in Ontario, you should only fill in the HST column.  Otherwise it might claim twice.
Click the blue "HST Taxable" header in order to get some information on whether you're eligible to apply for an HST rebate.  If so, at the very top answer Yes to "Are you eligible to claim the GST/HST rebate?"

[aidanjkeenan]

So, I added it to the HST column only. I'm still not getting it on my results? :(

[JeffL-Intuit]

Yes, unfortunately it's most likely because $525.07 is not high enough to claim for a credit.
The calculation is explained in the CRA link, however let's go over this with your numbers:

You paid $525.07 for your tools and I will use a fictional income of $50,000 just for this example.
Maximum deduction for eligible tools is the lesser of:
a) $500; and
b) the amount, if any, determined by the formula
A minus $1,127 where
A = the lesser of:
1. $525.07; and
2. $50,000

Your maximum deduction is the lesser of $500 and $-601.93 ($525.07 - $1,127).
So your deduction is $0 in this case.

[aidanjkeenan]

Thanks for your help Jeff! You rock.