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New Member
posted Oct 30, 2019 2:41:25 PM

I get an allowance to purchase computer equipment, for my cellphone bill and office furniture. How do I report it?

0 4 1924
1 Best answer
Level 15
Oct 30, 2019 2:41:29 PM

Ok, so this is not a reimbursement from an employer as I had originally thought. 🙂

What you need to do is report all your income and expenses as Self-Employed on a T2125 - Statement of Business Activities. Your income is going to include the "invoices" you sent the American company, and your expenses will be the actual receipts which you have kept.

If you had submitted the receipts to the company and received a straight across reimbursement, you would need to do nothing as they would be using the actual receipts as their own expense or write off, and you would not have been considered to have received any income. 

4 Replies
Level 15
Oct 30, 2019 2:41:27 PM

Is your allowance reported in your income (included on your T4)? And has your employer provided you with a T2200 Declaration of Conditions of Employment?

New Member
Oct 30, 2019 2:41:28 PM

Right, I guess I missed some essential information here - should post question from my cell after midnight...

I was self-employed last year, contracting with an American company as a Software Developer. The company granted 4 kinds of allowances:

1. Computer Equipment
2. Connectivity (Cellphone, internet)
3. Office Improvements
4. Education

I have invoiced for these allowances as per the agreement with my client, without providing receipts - but the money was spent as intended. I have of course not received a  T4 or other type of Canadian Tax documentation for this period.

Any insights?

Thanks a bunch!

Level 15
Oct 30, 2019 2:41:29 PM

Ok, so this is not a reimbursement from an employer as I had originally thought. 🙂

What you need to do is report all your income and expenses as Self-Employed on a T2125 - Statement of Business Activities. Your income is going to include the "invoices" you sent the American company, and your expenses will be the actual receipts which you have kept.

If you had submitted the receipts to the company and received a straight across reimbursement, you would need to do nothing as they would be using the actual receipts as their own expense or write off, and you would not have been considered to have received any income. 

New Member
Oct 30, 2019 2:41:31 PM

Perfect, makes sense. Thank you.