CRA forms
Form T777 Explained: Claiming Employment Expenses
Line 22900of the personal return, where the total from Form T777 is deducted from employment income.
Sources checked October 20263 min read
Who uses Form T777
Form T777, Statement of Employment Expenses, is where an employee works out the expenses they can deduct from employment income. The total goes on line 22900 of the return. Most claims rest on a Form T2200 from the employer confirming that the employee had to pay the expenses; the employee keeps that form rather than filing it.
The categories are narrower than for a self employed person. An employee cannot deduct the cost of getting to and from work or of special clothing they have to wear, and anything the employer reimbursed cannot be deducted a second time.
Key points
- Used by employees who had to pay their own work expenses
- Most claims need a signed Form T2200 from the employer
- Meals and entertainment are limited to 50%
- Salaried employees cannot claim mortgage interest, property taxes or home insurance
The main lines
Page one of the form is the summary. The vehicle, labour mobility and home work space amounts are worked out in charts further on and carried back.
| Line | What goes there |
|---|---|
| 8862 | Accounting and legal fees |
| 8520 | Advertising and promotion |
| 9281 | Allowable motor vehicle expenses, from the vehicle chart |
| 8523 | Food, beverages and entertainment, at 50% |
| 9200 | Lodging |
| 8910 | Parking |
| 1771 | Labour mobility deduction for an eligible tradesperson, up to $4,000 |
| 9945 | Work space in the home |
| 9368 | Total expenses, carried to line 22900 of the return |
Home work space: what each kind of employee can claim
Salaried and commission employees can both claim a share of electricity, heat, maintenance and reasonable monthly home internet fees, or a share of rent where they rent. Commission employees can also claim a share of property taxes and home insurance. Neither can claim mortgage interest or capital cost allowance on the home.
The share is worked out on a reasonable basis, usually the work space's area over the home's finished area. The claim is limited to the employment income left after other employment expenses, so it cannot create a loss; the excess carries forward to the next year.
Vehicles
An employee who drove their own vehicle for work, without a tax free allowance for it, can claim the work share of fuel, maintenance, insurance, licence fees, interest or lease costs and capital cost allowance, based on a log of work and personal kilometres. A reasonable per kilometre allowance from the employer that was not included in income generally rules out the claim.
Quick answers
Where does the T777 total go?
On line 22900 of the personal return, as a deduction from employment income.
Can a salaried employee claim mortgage interest for a home office?
No. Salaried employees cannot claim mortgage interest, property taxes, home insurance or capital cost allowance. Commission employees can claim property taxes and home insurance, but not the other two.
Do I need my employer's signature to use Form T777?
For most claims, yes. Your employer signs Form T2200, which you keep with your records.
Related pages
Official sources
Call or email and we will tell you which records we need and what the work costs, in writing, before anything starts.
Important. This article provides general educational information, not legal or tax advice for a specific business. Rules, administrative policies, rates and deadlines can change. Confirm your facts and current obligations with the responsible government agency and a qualified adviser.