T1284 : Saskatchewan employee tools tax credit

What’s in this article?

 

What is this?

This non-refundable tax credit recognizes the costs incurred with purchasing, replacing, or upgrading eligible tools as a condition of your employment in a particular trade. You can use this non-refundable tax credit to reduce your provincial Saskatchewan tax payable.

There are two components to the tax credit:

  • A one-time trade entry amount (any unused portion of this one-time trade entry credit component can be carried forward for two years)
  • An annual maintenance amount

The maximum amount that you can claim for each component depends on your trade. There are four groups of trades – click this link to refer to the form on the Canada Revenue Agency’s website to learn more about each of the four groups.

 

The Government of Saskatchewan says

The one-time trade entry amount is intended to recognize the high initial cost of tools that are required to be purchased by employees to enter their trade. The annual maintenance amount is intended to recognize the ongoing cost to a tradesperson of maintaining his or her tools that are required as a condition of employment.

The Canada Revenue Agency administers the Employees’ Tool Tax credit on Saskatchewan’s behalf and required that employees and employers complete a Form T1284 to determine both eligibility and the amount of the tax credit.

 

Am I eligible?

If you were a resident of Saskatchewan at the end of the year, and you were required to provide eligible tools for use in your employment, you are eligible to apply for this tax credit.

The Government of Saskatchewan says...

Eligible tools are tools that are acquired by you by purchase or lease to perform the ordinary tasks required in the conduct of your eligible trade occupation. Tools may include equipment that is in support of an eligible tool. Tools must not include any clothing or motor vehicles that are required to be licensed.

 

Where do I claim this?

Follow these steps in H&R Block’s tax software to file your 2015 taxes:

Important: Before you begin, ensure that you told us that you lived in SASKATCHEWAN on December 31st of the 2015 tax year, in H&R Block’s tax software. To do this:

  1. Click the HOME tab.
  2. Click the ABOUT YOU icon, and click the Your residence link. You will find yourself here:

Once you have confirmed your residence location, you can claim the Saskatchewan employee tools tax credit by following these steps:

  1. Click the PREPARE tab.
  2. Click the YOUR YEAR IN REVIEW icon. You will find yourself here:
  3. Click the checkbox labelled I was employed.
  4. Scroll to the bottom of the page and click Continue.
  5. You will find yourself on the PREPARE tab under the EMPLOYMENT
    icon.
  6. Under the EXPENSES heading, click the checkbox labelled Saskatchewan employee's tools tax credit (T1284).
  7. Scroll to the bottom of the page and click Continue.

When you arrive at the page for the Saskatchewan employee's tools tax credit, enter your information into the tax software.

 

Where can I learn more?