Tax Savings When You Move From Office Work to Blue-Collar Work

Moving from an office job to blue-collar work changes your daily costs. You may drive to job sites, buy tools, replace gear, and pay out of pocket more often. Tax savings comes from one thing: clean records that match the rules.

The first step is understanding how you are paid, because the rules change a lot.

Two pay styles that matter

• Employee: T4 in Canada, W-2 in the US
• Contractor / self-employed: often T4A in Canada, 1099 in the US

Do not mix the strategies. Pick the one that matches your pay.

1) Track mileage and job-site driving

Job-site driving is one of the biggest money leaks when records are weak.

Canada: If you qualify to claim motor vehicle or travel expenses as an employee, CRA points you to Form T777 and the rules for allowable motor vehicle and travelling expenses.

US: If you are self-employed, the IRS standard mileage rate for business use in 2025 is 70 cents per mile.

A mileage log should consistently show:

• date
• start and end location
• work purpose
• distance

Use MileLog to keep the mileage log real

MileLog is your mileage tracking app. It positions itself for both tax deductions and mileage reimbursement, and it focuses on the daily routine: track trips, classify, export reports.

Practical workflow:

• let MileLog record trips automatically
• classify trips as business vs personal
• generate and share a report when needed

2) Stop paying for work costs without a reimbursement plan (especially in the US)

Many blue-collar workers buy things for work because the job needs it. Tax rules may not reward that if you are an employee.

US: IRS Publication 529 says you can no longer claim miscellaneous itemized deductions subject to the 2% limit, including unreimbursed employee expenses, with limited exceptions.

That means, for most W-2 workers, the best "tax savings" move is often getting expenses reimbursed by the employer instead of paying out of pocket.

If you track mileage with MileLog, it also helps with mileage reimbursement claims, not only tax deductions.

3) In Canada, trades tools can be a real deduction

For many trades, tools are a major cost.

CRA has a specific tradesperson tools deduction concept for employed tradespersons, and CRA's employment expenses guide explains a maximum deduction framework (with limits and a formula).

Do this cleanly:

• keep every tool receipt
• keep a simple list of what each tool is used for
• keep employer paperwork required for employment expense claims when it applies (often part of the process)

4) Keep one simple "proof system" for all work expenses

Blue-collar work creates many small expenses that get forgotten:

• safety gear and protective items required for the job
• small supplies
• phone use for dispatch and job coordination
• travel-related costs for work travel situations

Canada: CRA is explicit that employment expense claims run through forms like T777 for eligible situations.

US: recordkeeping still matters for any area you can claim, and exceptions exist for limited employee categories using Form 2106.

A simple system that works:

• one folder for receipts (monthly)
• one note line per receipt: job + reason
• mileage logged daily (automatic is best)

5) If you are a contractor, act like a business on day one

Contractor work usually unlocks more deductions, but only with records. Mileage is often the biggest and easiest win because it happens every day, and it adds up fast.

US contractors: mileage can be claimed using the IRS business mileage rate method (70 cents per mile in 2025) if you qualify for that method.

Canada contractors: vehicle costs are commonly tracked by business-use percentage, and a strong logbook is the base for that approach.

Summary checklist

• Track mileage from the first day on the job
• Keep job purpose notes for trips
• Keep tool receipts and categorize tools
• Avoid paying employee work costs out of pocket in the US when reimbursement is possible
• Use MileLog to capture trips, classify them, and export reports