Ask an accountant: Employee expenses

Francesca Giroux, CGA
For the Lakeside Leader

An employee can deduct the cost of supplies paid for (or that were paid for the employee and included in the employee’s income) during the year on their personal income tax return if certain conditions are met. In order to be able to deduct the expenses for supplies on your personal tax return you must under your employment contract have had to provide and pay for the supplies, the supplies must have been directly used in your work, your employer has not repaid nor will repay you for any of the expenses incurred, and your employer completed and signed Form T2200 Declaration of Conditions of Employment. This form details the types of expenses that were to be paid by the employee in the course of their employment duties, and can be found on the Canada Revenue Agency website www.cra-arc.gc.ca by typing the form number and name into the search box on the website.
Example of expenses that are considered to be supplies includes but is not limited to stationary, stamps, printer toner, maps and directories. Items that are not considered to be supplies are items such as briefcases, calculators and other personal items. Other deductible expenses include the cost of long-distance telephone calls as long as they were made to earn employment income; however, the basic monthly rate for a telephone is not considered to be deductible. With regards to a cell phone, the portion of the airtime expenses that reasonably relate to earning employment income can also be deducted. The fees paid to connect or license the cell phone, and the fees related to internet service on the cell phone are not considered to be deductible.
Please write in with your questions to bonnie@nashgirouxllp.ca.
Information provided is of a general nature. As each individual or company’s situation is unique, you may wish to consult with your CGA for information specific to your own needs.

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