Employment expenses - Employee who earns
commissions
You 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
