A commission employee is someone who has part of their income based either on sales or another kind of achievement. Please check if you qualify as a commission employee. As per the Canada Revenue Agency (CRA) you must meet all of the following criteria:
- Under your contract of employment, you had to pay your own expenses
- You were normally required to work away from your employer's place of business
- You were paid in whole or in part by commissions or similar amounts. These payments were based on the volume of sales made or the contracts negotiated
- You did not receive a non-taxable allowance for travelling expenses. Generally, an allowance is non-taxable as long as it is a reasonable amount. For example, an allowance for the use of a motor vehicle is usually non-taxable when it is based solely on a reasonable per-kilometre rate
- You keep with your records a copy of Form T2200, Declaration of Conditions of Employment, which has been completed and signed by your employer.
There are also some few things to keep in mind:
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The expenses may not be eligible for a tax deduction: Not all commission-based employment expenses are eligible for a tax deduction. For example, expenses related to meals, commuting to and from work, and clothing are generally not deductible. Only expenses that are necessary for you to perform your job duties and that are not reimbursed by your employer are typically eligible for a deduction.
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You may not have entered the expenses correctly: Double-check that you have entered the commission-based employment expenses correctly in TurboTax. Make sure you have entered them in the correct section of the program and that you have entered the correct amounts. If you have entered the expenses correctly, but they still don't affect your refund, try deleting the expenses and re-entering them to see if that resolves the issue.
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Your expenses may have been offset by other deductions: If you have other deductions that are reducing your tax liability, such as mortgage interest or charitable contributions, your commission-based employment expenses may not have any impact on your refund. This is because your tax liability has already been reduced by those other deductions.
If the error still persist, we believe your best option is to contact our telephone support team for further assistance, as they have the option to view your screen to help resolve the issue. To contact them, please follow this link: Contact Us.
For more information, please visit the Canada Revenue Agency page: Commission employees
And TurboTax FAQs page: Tax-Deductible Expenses for Commission Employees
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