The non-accountable allowance of elected officials for work-related expenses was, within a limit, previously exempt from income tax.
As of 2019, the full amount of a non-accountable allowance is now a taxable benefit, meaning you’ll include this amount in your income for tax purposes. An allowance is considered non-accountable if you don’t have to give details or submit receipts to justify your spending.
Affected officials include:
- Elected members of provincial and territorial legislative assemblies and municipality offices
- Elected officers of municipal utilities boards, commissions, and corporations
- Members of public and separate school boards
The amount to include in your income is on your T4 slip at box 14, Employment Income, and in the Other information area, under code 40. For more information, visit the CRA’s webpage on changes to non-accountable allowances.
To enter this amount in TurboTax, follow the applicable steps below.