Employment expenses - Employee who earns commissionsYou are paid on a commission basis for your work. Therefore, the amount of your income will appear in box 42 of the T4 slip and, if you are a resident of Quebec, in box M of the RL-1 slip.
If you are a salaried employee, you can deduct certain employment expenses that you have incurred that relate to your work. However, make sure that your employer has first provided you with the completed federal Form T2200, as well as the Quebec Form TP-64.3 if applicable.
To enter this amount in the program, please follow the steps below:
1. On the "Left-side menu on the Interview tab", select "Interview setup".2. On the screen to your right, go to the "Employment and other benefits" group, check the box for "Employment expenses" and click on "Next" at the bottom of the page.
3. Return to the "Left-side menu on the Interview tab" and select the "T4 and employment income". For residents of all provinces except Quebec, select "T4 Income (earned in any province except Quebec)", while for Quebec residents, and choose "T4 and RL-1 (Relevé 1) income earned in Quebec with QPP contributions".
4. On the page that is generated, enter the information of your T4 and RL-1. Make sure you enter an amount in Box 42 of the T4 and in Box M of the RL-1 slip for Quebec residents.
5. On the ''Left-side menu on the Interview tab'' select the "Employment Expenses" and on the screen to the right, click on the plus sign "+" icon to the right of the line "Eligible employment expenses for an employee earning commission income".
6. Complete the new page "Employment expenses - Employee earning commission income" generated on the right, enter the name of your employer, your total commission income and other relevant information, particularly the line "Commission income upon which the employment expenses are based", which is a required field, and click" Next "at the bottom of the page.7. If you received a non-taxable allowance from your employer to reimburse certain expenses, enter it in the Allowance section and it will be deducted from the expenses you have entered.
8. To enter qualified motor vehicle expenses, click the subsection "Motor vehicle expenses". In this subsection, choose the appropriate option depending on your situation and complete the page.
9. If you received an allowance from your employer to reimburse motor vehicle expenses enter it in the "Allowance received" section an on the line "Allowance received for motor vehicle expenses (excl. CCA & interest)".
10. If you worked at home, choose the subsection "Home office expenses" to enter your home office expenses, if applicable; Note that you cannot deduct mortgage interest, or claim capital cost allowance of your building.
11. You must complete the subsection "Employer conditions" and answer the questions. For Quebec residents, click on "Employment conditions - Quebec" and enter the requested information.
Your employment expenses will be entered by the program on the federal form T777 and on line 22900 of the federal return. If you are a resident of Quebec, the TP-59 form will be generated and the amount will be reported on line 207 of the Quebec return, with the appropriate code displayed on line 206.
Important: The total expenses you can deduct cannot exceed the total amount of commissions that you received during the year, which is indicated in Box 42 of the T4 slip.
NOTE: You must keep a record of all the expenses you incurred. This register must be kept for a period of six (6) years after the end of the tax year, as the CRA (and/or for Quebec residents, the MRQ) may request some of your documents.
For more information, consult the CRA's guide by clicking on the following link:
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4044.html
For Revenu Québec, consult the following link:
https://www.revenuquebec.ca/en/citizens/income-tax-return/completing-your-income-tax-return/completing-your-income-tax-return/line-by-line-help/201-to-260-net-income/line-207/ID: 20201021114443NA.xml
Webpage: KPA350-20201021114443NA.htm