If a salaried employee is paid a car allowance and that is included in their T4 under employment income can the vehicle be claimed under employment expenses?

[TurboTaxJennifer]

Assuming the employee meets the other requirements, yes.

In order to claim the expense, the allowance must be included in the employee's income and the employee must have a signed Form T2200 from the employer that outlines the vehicle expense as a condition of employment.

[user300052135]

Thank you for your response. We do have a T2200 which states that his vehicle is required. I was looking at putting it under allowable motor vehicle expenses but it doesn’t look like he meets the conditions for this because his employer pays him a reasonable allowance. It just doesn’t make sense to me because he is paid a flat rate every month for his car for which his employer doesn’t deduct taxes. But now it looks like we owe CRA because this amount is included in his employment income.

[Nicole0499]

If the motor vehicle allowance is included in the T4 can you claim vehicle expenses

[Nicole0499]

Thank you. Your reply is very informative and helpful

[Nicole0499]

I didnt claim my motor vehicle allowance expenses for 2017 and 2019 CRA tax filled.this allowance is included in my T4. Can I still file for adjustments for these tax years.