How do I claim travel expenses as an employee?

by TurboTax• Updated 10 months ago

Salaried and commission employees can claim food, drink, lodging, and transportation expenses that they paid while travelling for work. As long as you meet all eligibility criteria, such as being regularly required to travel as part of your job, you can claim these expenses on your tax return.

Along with travel expenses, you may be able to claim other qualifying employment expenses to reduce your taxable income. To learn more about all expenses available to employees, visit the CRA’s Employment Expenses webpage.

Who’s eligible to claim travel expenses?

As a salaried or commission employee, you’re considered eligible to claim travel expenses if:

You must normally work away from your place of employment.
You had to pay for your own work-related travel and weren’t reimbursed.
You didn’t receive a nontaxable travel allowance.
You have a copy of Form T2200 signed by your employer. Don’t submit this form with your return, but keep it for your records.

What’s considered a travel expense?

Eligible travel expenses are, for the most part, the same for both salaried and commission employees. You can claim costs you paid for:

Travel fare, such as plane, train, or bus tickets. If you’re a commission employee, your fare must have been paid only to earn commission.
Food and drinks for yourself (not for clients), as long as you were away for at least 12 hours at a time.
- The cost of food and drinks bought while on a plane, train, bus, ferry, and so on can also be claimed if they weren’t included in the fare.
- Note: The government considers 50% of the costs of food and drinks consumed while travelling to be a personal expense and not an employment expense, so only 50% of the expense can be claimed.
Lodging
Parking

Only commission employees can claim the cost of entertainment bought while on a plane, train, or bus, as long as it wasn’t included in the ticket price.

Which expenses can’t I claim?

Motor vehicle expenses aren’t included in employment travel expenses. You’ll have the chance to claim both travel expenses and motor vehicle expenses in the same section of TurboTax.

Instructions for TurboTax Online

To claim your employee travel expenses in online editions of TurboTax:

Select Find from the menu and enter employment expenses.
Select the search result, then select Go.
On the Employment Expenses screen, select Yes to Does this apply to you?
On the Employment Expenses Profile screen, select T2200, then Continue.
Select the checkbox for Other Employment Expenses (and any other applicable checkboxes), answer the GST/HST rebate question, then select Continue.
On the Other Employment Expenses screen, enter your travel expenses on their corresponding lines. Use your expense receipts to enter your amounts (including tax).
When you’re finished, select Continue.
Proceed through the screens that follow. If you live in Québec, you’ll reach the General Employment Conditions screen, which you can complete now or later.

Instructions for TurboTax Download

To claim your employee travel expenses in TurboTax Download:

Select Find from the menu and enter employment expenses.
Select the search result, then select Go.
On the Employment expenses screen, select Yes to Incurred expenses for the purpose ofearning employment income, then Continue.
On the Employment Expenses Profile screen, select T2200, then Continue.
Select the checkbox for Other Employment Expenses (and any other applicable checkboxes), then select Continue.
On the Other Employment Expenses screen, select the GST/HST rebate checkbox if applicable, then enter your travel expenses on their corresponding lines. Use your expense receipts to enter your amounts (including tax).
When you’re finished, select Continue.
Proceed through the screens that follow. If you live in Québec, you’ll reach the General Employment Conditions screen, which you can complete now or later.