Comprehensive Guide to the T2200 Form and Employment Expense Deductions
If your company has recently implemented a remote working policy, you've started working from home, or you're planning to claim unreimbursed employment expenses this tax season, this article is for you.
As a salaried employee, the tax rules regarding what you can deduct differ from those for freelancers or self-employed individuals.
This is where the T2200 tax form comes into play.
What is the T2200 Tax Form?
The T2200, Declaration of Conditions of Employment, is a form salaried employees use to claim job-related expenses on their tax return, including home office expenses. This can reduce the overall tax amount owed to the Canada Revenue Agency (CRA).
T2200 vs. T777
You don’t need to fill out the T2200 yourself—your employer does this for you by completing and signing Part B. Keep it for your records in case the CRA requests proof.
You’ll report your deductible expenses using Form T777, Statement of Employment Expenses, to calculate your total eligible expenses for your tax return.
Certain employees, such as transport workers or those claiming a GST/HST rebate, will need additional forms (TL2 and GST370). Quebec residents need the TP-64.3-V form.
What Expenses Can Be Claimed on the T2200?
You can claim expenses under two conditions:
- Your job requires these expenses as part of your employment.
- Your employer hasn’t reimbursed you for them.
Eligible expenses include:
- Accounting and legal fees (for establishing the right to salary)
- Travel costs (excluding motor vehicle expenses)
- Parking (if it’s not at your primary workplace)
- Office supplies (such as pens, paper, cleaning materials)
- Salary (paid to an assistant)
- Office rent (for a workspace)
- Motor vehicle expenses (operating costs and capital cost allowance)
- Home office expenses (a percentage of household costs related to your work)
COVID-19 and T2200
During the pandemic, a simplified T2200s form allowed employees working from home to claim up to $500 in expenses. However, this is no longer applicable for tax year 2023.
Employment Expenses for Different Occupations
Employment expenses vary based on your role, whether you’re a commission employee, transport worker, artist, or tradesperson. Make sure you explore all available deductions to reduce your taxable income.
Key Points
As a salaried employee, you can deduct certain work-related expenses on your tax return, provided your employer completes the T2200 Declaration of Conditions of Employment form. However, the expenses you can claim must be directly related to your job, and your employer must approve them. Eligible expenses for the T2200 include accounting and legal fees, travel, parking, office supplies, salary for an assistant, office rent, vehicle costs, and home office expenses.
