Team Tax’s Guide to tax form T2200

How to Save Taxes as an Employee

If you’re an employee that wants to deduct work expenses from your taxes, you’ll definitely want to learn more about Form T2200. This Team Tax guide discusses the main information you will need to know.

What is the T2200 tax form?

The T2200 is a 13 question tax form that you can have your employer fill out for you to deduct any expenses that you incurred to earn your employment income. Essentially, if you paid for anything out of pocket to go about earning income from your salaried job, this is the tax form that you can use to claim these expenses.

It’s important to note that the T2200 is not for self-employed individuals or business owners, as they can already deduct expenses through other tax forms; it is only for salaried employees.

Who prepares the T2200

As an employee, your employer is responsible for providing you with a T2200. In some cases employers will provide this automatically, however, it is also possible to request this form from your company’s HR department if it is not provided. If your employment agreement describes that you are required to pay for your own expenses (and your employer did not reimburse you), then you are legally entitled to the deductions and the T2200.

Once you have received a T2200, you can claim these expenses in Tax Form T777.

What type of expenses can be deducted?

Almost any expense that you incur in order to earn your employment may be deducted. There’s a long list that the CRA created which can be viewed here – https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t777.html

The T2200 is especially beneficial for commission paid employees as it allows you to deduct things like advertising expenses, client entertainment, parking, etc. In most cases employers will reimburse you the full cost for these expenses, but depending on your employment agreement if this is something that you have to pay for out of pocket then you can claim it on your tax return.

How to claim T2200 deduction

When filing your tax return include tax form T777 Statement of Employment expenses. 

Contact

If you have any questions about the T2200 or the T777, or any general questions, please feel free to reach out to Team Tax.