A Salaried Employee's Guide to Claiming Work-Related Expenses
Are you a salaried employee with work-related expenses? Got a T2200 form from your workplace and wondering what to do with it? Let us break it down for you.
What is a T2200?
The T2200 is known as the Declaration of Conditions of Employment. Think of it as a note from your employer that says, "Yes, this person had to spend some of their own money to do their job."
While self-employed individuals and business owners can deduct a wide variety of expenses at tax time, salaried employees do not have this same advantage. However, a T2200allows you to claim some eligible work-related expenses to help reduce your tax liability. This could include anything from the gas you used travelling for work, to the paper clips you bought for your home office. But remember, not everything is covered. (As much as you need your daily coffee - it doesn't count.)
Confirm Your Eligibility
First, you’ll need to ensure that you qualify for a T2200. The items you claim must be essential for your work, and, most importantly, not reimbursed by your employer.
If you did not receive aT2200 from your employer, you can visit the CRA’s publication on Eligible Expenses to determine if you qualify. If you do, then contactyour company’s human resources department to let them know.
If for some reason your employerwon’t provide you with a T2200, document your attempts, and consult with a taxprofessional. If push comes to shove, you might file your taxes without it, butbe ready to back up your claims if CRA comes knocking.
Identify Your Deductible Expenses
Check your records to identify all the expenses that you’ve had to pay to do your job over the last year. Common ones include travel costs, office supplies, and home office expenses. However, personal expenses like commuting to work are not eligible. It’s important to understand which expenses are deductible.
Complete the T777
The T777 form is your Statement of Employment Expenses. Think of it as the T2200's sidekick where you list all your work expenses for the year. This is the form you’ll actually need to include with your tax return, so don't forget it!
You won’t need to send yourT2200 in with your taxes, but you should still keep it around, along with all your receipts. This will be your proof should the CRA have any questions later on.
What If I've Been Working from My Couch?
If the pandemic had you setting up shop at your kitchen table, there were some special rules for 2020to 2022 where you could claim a flat rate for home office expenses. But for2023 and beyond, it's back to business as usual with the T2200 form.
Feeling lost? Consult a Professional.
If there's any confusion or if you need clarification on certain expenses, it is always beneficial to consult with a tax expert. We can provide guidance tailored to your specific situation and ensure you're on the right track.
Remember, every situation is unique. Just make sure you're claiming the right things, keep everything documented, and when in doubt, give us a call at 250-590-5162.
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