Employment expenses - Commission employee
When your job is to sell property or negotiate contracts for
your employer, you can deduct certain fees you paid to earn your
commissions.
Certain conditions must be met:
‒
You were usually obliged to work elsewhere than at
the place of your employer's establishment.
‒
Your income consisted entirely or partially of
commissions or similar amounts.
‒
According to your employment contract, you had to pay
your own employment expenses.
‒
You keep in your files a copy of the federal T2200
and for Quebec resident the TP-64.
To claim those employment expenses, please follow these
steps:
1. On the "Left side menu of 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 (including T777S)" 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 slip and for Quebec RL-1.
5. Return to the "Left side menu on the Interview tab",
select "Employment Expenses".
6. On the page on the right entitled "Employment
expenses", on this page, choose "T777 Eligible employment
expenses of an employee earning commission income", click
on plus sign "+".
7. On the page entitled "Employment
expenses" Employee earning
commission income" enter all the required information
and click "Next" at the bottom of the page.
8. To record your eligible motor vehicle expenses, click on the
"Motor vehicle expense" section and enter the relevant
information.
9. If you received an "Allowance for your motor vehicle
expenses", enter the amount on the line "Motor vehicle
expenses (except CCA & interest) ".
10. If you have your office at home, choose the subsection
"Home office expenses".
11. On the line "Percentage (%) of home being used for
personal purposes " indicate the percentage. Subsequently,
you must answer the questions that concern you.
12. If you are a tenant, on the "Office rent" line, enter
the annual cost of the rent you paid.
13. If you purchased equipment for your work, enter the cost on
the "Other home office expenses - specify" line.
14. If you received an Allowance from your employer, enter the
amount in one of the three (3) lines in the "Allowance"
subsection.
15. You must complete the subsection "Employment
conditions" and answer the questions. For Quebec residents,
also click on "Employment conditions - Quebec" and enter the
requested information.
Your employment expenses will be entered by the program in
federal form T777 and on line 22900 of the federal
return. If you are a Quebec resident, 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.
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, please visit the following links:
For the CRA:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-22900-other-employment-expenses.html
Revenu Québec:
http://www.revenuquebec.ca/en/online-services/forms-and-publications/current-details/tp-59-v/
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Webpage: KPA350-20220309085528DE.htm
