Yes, there are some circumstances where employees can deduct expenses relating to their employment. This week we will take a look at a few of these.

For meals to be deductible, an employee must be away from the municipality or metro area where the employer’s business is located for at least 12 hours and file form TL2 with their tax return. Certain railway employees can claim 80% of the cost of qualifying meals. For the rest of us the claim is a maximum of 50% of the cost. If you do not keep receipts for meals, as long as you maintain a time and travel log, you can claim 50% (or 80%) of $11.00 per meal to a maximum of three meals a day (1 meal for each four hour period you are away). If employees are provided with cooking facilities and employees buy and prepare meals for themselves, the claim is 50% (or 80%) of $22.00 per person per day. The $11.00/$22.00 flat rates can change but are unlikely to.

In certain circumstances automotive, aircraft and other travelling expenses may be deductible. Form T2200 is required. You must be required to work away from your employer’s place of business on a regular basis and required to pay your own travelling expenses and do not receive certain tax-free allowances for travelling expenses. If the non-taxable travel allowance is less than the actual expenses paid, the allowance can be added into income and the total expenses deducted. Expenses that may be claimed include gas, oil, tires, insurance, license, repair and maintenance, interest on vehicle loans, lease payments, and capital cost allowance. There are dollar limitations on some of these expenses.

Some expenses relating to your home may be deductible. Your employer must require you to maintain an office and pay for its expenses. Form T2200 must be filed with your tax return. Your employer must not reimburse you for your expenses, the expenses must result from earning income from your job, and the residence must be owned or rented by you. All these conditions must be met. But wait…there is more. The space within your home must be where you spend most of your time working or you must meet with employment-related people on a regular and continuous basis. If you use the area for non-employment things you must prorate some of the expenses. Also, certain expenses cannot be used to create or increase a loss from your employment income but the loss can be carried forward.

If you met the conditions above, the types of expenses you may be able to deduct include reasonable utilities, cleaning supplies and minor repairs. You may also claim the cost of long distance calls and cellular airtime. If you are a commissioned salesperson you can also claim a reasonable portion of taxes and insurance paid on the home. Mortgage interest and capital cost allowance is not allowed.

As an employee if your are required to hire someone and/or pay office rent for them you may be able to deduct the expenses. Form T2200 is required.

If your employer requires you to provide your own supplies and form T2200 is completed, you can deduct these supplies from your employment income. The basic criteria is that the supplies must be "used up" and cannot be re-used (e.g. pen, paper, bandages, etc.).

Most professional membership dues paid by an employee are deductible if they are needed to maintain a professional status that is recognized by statute. This includes required malpractice insurance and some dues paid to provincial associations. Examples include professional accountants (C.G.A., C.A., C.M.A.), doctors, and lawyers. For students these fees are not deductible but may qualify as tuition fees.

Most dues for membership in a trade union or an association of public servants can be deducted. This also applies to non-members who must pay these dues because the collective agreement says they have to. Money to go towards strike funds is usually deductible but special assessments for strike funds are not.

A reminder, this article reflects situations for employees, not self-employed people. Next week we will start looking at the self-employed area.

This article is provided for information purposes only and should be used only in conjunction with the appropriate advice about your situation from an appropriate professional.