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I'm employed and received commission income in 2013.  I have entered the commission income in Box 42 in the T4 Slip income during the interview and in the line "Commission income upon which the employment expenses are based."  When i generate the tax return I receive a message stating "You cannot currently Netfile your return.  To claim employment expenses you must have at least $1 of commission income.


I do and I have in entered in two places!  What am I missing here?  It looks the same as my last years return that processed fine!



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Employment expenses - Commission employees

If you are an employee earning commission income, you can deduct certain expenses you paid to earn your commissions. However, make sure that your employer has first provided you with the duly completed federal Form T2200, as well as the Quebec Form TP-64.3 if applicable. In order to claim those employment expenses, please follow these steps:

1- In the "QuikClik Navigator", located on the left-hand side of the screen, select "Interview setup".

2- On the right-hand side, under "Deductions and credits", check "Employment expenses" and click "Next" at the bottom of the page.

3- Return to the "QuikClik Navigator", click "Employment expenses", and on the screen located to your right, select "Eligible employment expenses for an employee earning commission income".

4- On the new page that appears, enter the name of your employer, your total commission income amount and all other relevant information, then click "Next" at the bottom of the page.

5- To enter your eligible motor vehicle expenses, click on the "Motor vehicle expenses" item in the "QuikClik Navigator". In this section, choose the appropriate option depending on your situation and complete the page accordingly.

6- Return to the "QuikClik Navigator" and click on "Home office expenses" to enter your home office expenses, if any.

7- In the "QuikClik Navigator", click on "Employment conditions" and answer the questions. These entries will pertain to the federal level. For Quebec résidents, click on "Employment conditions - Quebec" in the "QuikClik Navigator" and enter the requested information.

The amount of eligible expenses will be entered by the program on line 229 of the federal return and on line 207 of the Quebec return. Furthermore, the program will generate federal Form T777 and Quebec Form TP-59.

Important: The total expenses you can deduct cannot exceed the total commissions you received during the year.

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I have a very similar issue. I received a honorarium with a T4A slip (box 48). The tax file wants me to link it to a business, to establish how of the honorarium should be taxed, but I do not have a business. I am an employee. How does an individual deal with an honorarium?

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T4A slip - Box 048 - Fees for services - Business income

You have received a T4A slip with an amount in box 048, for the professional fees you earned. It should be noted that this amount does not include taxes.

To enter this amount in the program, follow the steps below:

1- In the "QuikClik Navigator" located on the left-hand side of the screen, click on "Pension income, T4A, split pension".

2- On the page appearing on the right, select "T4A - Pension, retirement, annuity, and other income".

3- On the newly generated page, enter the amount from box 048 of the T4A slip on the line "Box 048 - fees for services (report this amount as a T2125 - Business or Professional income)".

4- Return to the "QuikClik Navigator" and click on "Interview setup".

5- On the page appearing on the right, select "Self-employed business income" and click "Next".

6- In the "QuikClik Navigator", click on the line "Self-employment income" and, on the page appearing on the right, select either "T2125 - Business income" or "T2125 - Professional income" .

7- On the page "T2125 - Business identification", enter the name of the business on the line "Name of the professional business (or your own name if the business does not have one)", then enter the other information in the required fields marked with a red asterisk.

8- In the field for "6-digit code from the North American industry classification system", enter the code that best describes your industry. If you do not know the code, click on the tool tip (the question mark) (?) on the right-hand side of the box to get it.

9- On the next page, "Professional income and expenses", enter $0.00 for the line "Gross professional fees including work-in-progress (WIP) and GST/HST collected or collectible" and enter the amount of box 048 of the T4A on the line "Fees for services (T4A Box 048)". If you have expenses, enter them in the boxes corresponding to their description.

10- For expenses, if your company is registered for the GST and HST (QST), these expenses must be entered before taxes to reflect the ITRs and ITCs you claimed.

The amount will be reported on lines 162 or 164 and 135 or 137 of the federal return. If applicable, this amount will also appear on line 154 of the Quebec return as well as line 25 of Quebec Schedule L. The program will also generate federal form T2125, as well as Quebec form TP-80 if required.

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