EMPLOYMENT EXPENSES DEDUCTION

What is it?

This deduction applies only to employees—not to the self-employed—and only to certain categories of employees. Unlike self-employed individuals, employees can deduct only specific expenses, and the eligible expenses vary depending on the type of employment.

Form T2200 required:

To claim this deduction, the employee must have Form T2200, Declaration of Conditions of Employment, completed and signed by their employer. The form is not filed with the return but must be kept on hand in case the CRA requests it. The three-page form confirms that the employee was required to cover certain expenses as a condition of their job.

Who can claim?

Only employees in certain categories are eligible, including:

• Employees required to work from home at least 50% of the time for a minimum of four consecutive weeks
• Employees required to use their own vehicle for work
• Tradespeople
• Artists (e.g., writers, actors, musicians, painters, dancers)
• Salaried employees
• Commission employees
• Employees in the transport industry (airline, railway, bus, trucking)
• Apprentice mechanics, painters, and body repairers
  Forestry workers

Eligible expenses:

The expenses that can be deducted depend on the employee’s category. Detailed information is available in CRA Guide T4044. If certain conditions are met, employees may be able to deduct home office expenses (such as utilities, internet, and rent) and, in some cases, motor vehicle expenses.

UFile:

To claim employment expenses in UFile:

1. Go to the Interview tab.
2. Under Employment and other benefits, check the box for Employment expenses.
3. On the left, select Employment expenses and then choose the appropriate category.
4. UFile will generate a Form T777 - Statement of Employment Expenses, and report the deduction on Line 22900.

References:        

• CRA Guide for Line 22900 - Other Employment Expenses
• Guide T4044, Employment Expenses
• Form 2200
• Income Tax Folio S4-F14-C1 Artists and Writers
• Income Tax Act, s.8. Line 22900 is based on a collection of deductions authorized under various subsections of s.8