I only want to claim the 5000 kms x $0.58 or $2900 and not use the detailed employment expense calculation but I can't show it on this form without overriding. Overriding negates the Netfile option. Help.
Hello,
It is understandable that there is some confusion in making tax deduction claims for vehicle expenses, as how they are claimed depends on the reason for the claim (eg. Medical expense, employment expense, self-employed). All employment expenses require the form T2200 Declaration of Conditions of Employment from their employers stipulating what expenses the employee is required to as a condition of their employment. As an ‘employment expense’, you would claim vehicle expenses for tax deduction by claiming the detailed amounts for the year or period of employment, where the mileage is used to determine the business to personal use ratio for expenses that can reasonably be deducted. The form T777 is what will be submitted to the Canada Revenue Agency (“CRA”) to establish your claim for tax deduction, that information is submitted by TurboTax on your behalf when it is completed and you submit your return to the CRA.
The simplified method, where mileage is used to account for an expense, is used in other claims including Medical Expense claims. Where an employer recompenses an employee a kilometric rate, the amount will be included into their income, and the employee must use the detailed method to account for their expenses, unless the employer is using a prescribed rate specified by the CRA in which case the amount is not accounted as income for the employee or an expense, and is excluded from their T4 employment income slip. Some employees and self-employed persons mistaken that they can apply a kilometric rate when it is not permissible by the CRA in determining the reasonableness of their expense claim.
For your reference see from the CRA: