I WFH in a diff province as my employer. They have comp'ed me only partially, e.g. $30 per month for cell phone. How do I reflect this in terms of the GST/HST Rebate?

[mikeseveian]

Another example, to furnish my home office I had a $500 allowance, which they reimbursed me for. I ended up spending more than $500, and I am wondering how to report this correctly. Do I report only the un-comp'ed portion? Or only the comp'ed portion?

[TurboTaxAllen]

Hello,

Both TurboTax Online and Desktop editions will complete the form GST370 ‘Employee … GST/HST rebate application’ as you complete your Statement of Employment Expense form T777 through the Easy Step interview process.  

With regards to employees incurring expenses in performing their duties and claiming those expenses for tax purposes, the CRA has published a guide T4044 Employment Expenses, see below for the link.  Aside from being part of their employment agreement to incur these expenses, the employer will provide the employee a Form T2200, Declaration of Conditions of Employment for their tax purposes. An employee can claim the eligible expenses stipulated in their conditions of employment, these amounts are reported fully including GST/HST paid in the ‘Statement of Employment Expenses’. The ‘Statement of Employment Expenses’ has three boxes to claim the expense paid ‘GST taxable’, ‘HST Taxable’ and ‘Zero rated & exempt’ reflecting whether you paid GST, HST or no tax on the items claimed for expense. To reiterate, the sections for GST and HST include the tax paid in those expenses. Any reimbursement or allowance is reported separately on the T4 by the employer as income.  However, in completing the Statement of Employment Expenses, there is one section to report amounts that are rebates, allowances or reimbursements received for vehicle expenses that not included in your income. 

In general, all reimbursements to employees for incurring expenses are treated as a Taxable Allowance or Benefit and is considered Income for tax purposes. It is reported on the T4, box 40 ‘Other taxable allowances and benefits” and included in box 14 “Employment Income”.  For some of these taxable allowances and benefits the employer will include the GST/HST (if any) as part of the value of that benefit, and deduct CPP and EI.

The ‘Employee and Partner GST /HST Rebate Application’ for GST370 allows an employee who incurred an expense where GST or HST was paid to be rebated to them.  This amount will be reported on Line 45700 of their T1 Income Tax and Benefit Return, and will be included in income in the year it is received, reported on line 10400 of that year’s T1 Income Tax and Benefit Return. In completing the form GST370 there will be a section to report any other eligible expense that qualify for the GST/HST rebate, excluding the employment expenses reported and claimed earlier on the form T777 ‘Statement of Employment Expenses’.

For your Reference:

• From the Canada Revenue Agency: Chapter 10 - Employee goods and services tax/harmonized sales tax (GST/HST) rebate https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4044/employment-ex...
• From the Canada Revenue Agency: Line 22900 – Other Employment Expenses https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-re...
• From the Canada Revenue Agency: How to complete Form GST370, Employee and Partner GST/HST Rebate Application. https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4044/employment-ex...