If your company has introduced a remote working policy, you started working from home, or you’re looking to claim your unreimbursed employment expenses this tax season, this is for you.
Unlike freelancers or self-employed folks, the rules around what salaried employees can deduct as expenses during tax season can look a little different.
Enter the T2200 tax form.
- If you’re a salaried employee, you can claim certain employment expenses on your tax return if your employer fills out the T2200 Declaration of Conditions of Employment form.
- As an employee, there are strict rules around what you can claim and all expenses must get approved by your employer.
- Eligible expenses you can claim on the T2200 include accounting and legal fees, travel expenses, parking costs, office supplies, salary expenses, office rent, motor vehicle expenses and work-space-in-the-home expenses.
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What is the T2200 tax form used for?
As a full-time salaried employee, you’ll use Form T2200, “Declaration of Conditions of Employment” to deduct work-related expenses (including home office expenses) from your income tax return. This can help reduce the total amount of taxes you’ll have to pay to the Canada Revenue Agency (CRA).
What’s the difference between T2200 and T777?
As an employee, you don’t have to complete the T2200 yourself because this responsibility falls on your employer. More specifically, your employer must fill out Part B of this three-page document and sign the “Employer Declaration” box after approving your deductible eligible expenses on the T2200 tax form.
In other words, you don’t need to submit the T2200 form with your income tax return, but it’s wise to keep a record of it, along with all the expenses you’re claiming in case the CRA asks to see it.
Instead of submitting the T2200 form, you’ll have to document all your deductible expenses on Form T777, “Statement of Employment Expenses” to calculate your total expenses on your tax return.
- If you’re a transport employee, fill out the TL2 claim, “Claim for Meals and Lodging Expenses”.
- If you’re claiming a GST/HST rebate, submit the GST370 application, “Employee and Partner GST/HST Rebate Application”.
Salaried and commissioned employees who reside in Québec should complete the TP-64.3-V form and have their employers sign it.
What expenses can be claimed on T2200?
You may be able to claim expenses you paid to earn employment income under these two conditions:
- Your employment contract requires you to incur these expenses as part of your employment.
- Your employer did not reimburse you.
Eligible expenses you can claim under the T2200 form include:
- Accounting and legal fees: legal fees to establish the right of salary
- Travel expenses: meals, lodging, and transportation other than motor vehicle expenses
- Parking: only during work time and not at the main employer’s workplace
- Office supplies: consumable expenses such as pens, paper, cleaning supplies, etc.
- Salary expenses: salary paid to an assistant
- Office rent: renting a space to work or meet clients
- Motor vehicle expense: vehicle operating expenses and capital cost allowance (CCA)
- Work-space-in-the-home expenses: percentage of the home expenses related to earning income
What if I worked from home during COVID-19?
During COVID-19, employees who worked from home due to COVID-19 and had to pay for home office expenses, would have used Form T2200s “Declaration of Conditions of Employment for Working at Home Due to COVID-19″. Employees were able to claim up to $500 in employment expenses as a flat rate. This is no longer applicable for tax year 2023.
Are there different types of employment expenses?
There are several types of employment expenses that each have its own eligibility conditions and allowable expenses. Depending on the work you do, we have a few articles to help uncover what you can claim to minimize your taxes:
- Salaried employees
- Commission employees
- Transportation employees
- Forestry operations
- Employed artists
- Employed Tradesperson
- Employed Apprentice Mechanics
You’ve worked hard for your income and deserve to maximize your tax deductions to lower your taxable income. We’re here to help.
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