Working from home, part-time - not related to COVID

[Fibrelady]

I work from home, whenever needed. The company I work for has an online presence directed to a group of people with a common specialized interest. I do all the work required of me from home. It's a very part-time job but I'm available 7 days a week to answer questions, etc.  I have the T2200 E form filled out and signed by my employer. I'm sort of lost as to how to take advantage of this option because I've been working for this company for years and just learned last fall that this could be an option available to me.

[Geo123]

Hello Fibrelady,

Assuming you are receiving a salary please see below (there is also one for employee receiving Commission - is basically the same with some additional expenses permitted))

1. On the "Left side menu of the Interview tab", select "Interview setup".

2. On the screen to your right, go to the "Employment and other benefits" group, check the box for "Employment expenses (including T777)" and click on "Next" at the bottom of the page.

3. Return to the "Left-side menu on the Interview tab" and select the "T4 and employment income". For residents of all provinces except Quebec, select "T4 Income (earned in any province except Quebec)", while for Quebec residents, and choose "T4 and RL-1 (Relevé 1) income earned in Quebec with QPP contributions".

4. On the page that is generated enter the information of your T4 slip and for Quebec RL-1.

5. Return to the "Left side menu on the Interview tab", select "Employment Expenses".

6. On the page generated on the right, entitled "Employment expenses", on this page choose "T777"eligible employment expenses of an employee earning a salary", click on the plus sign "+".

7. On the page entitled "Employment expenses" Employee earning a salary" enter all the required information and click "Next" at the bottom of the page.

8. To record your eligible motor vehicle expenses, click on the "Motor vehicle expense" section and enter the relevant information.

9. If you received an "Allowance for your motor vehicle expenses", enter the amount on the line "Motor vehicle expenses (except CCA & interest) ".

10. You have your office at home, choose the subsection "Home office expenses".

11. On the line "Percentage (%) of home being used for personal purposes " indicate the percentage. Subsequently, you must answer the questions that concern you.

12. If you are a tenant, on the "Office rent" line, enter the annual cost of the rent you paid.

13. If you purchased equipment for your work, enter the cost on the "Other home office expenses - specify" line.

14. If you received an Allowance from your employer, enter the amount in one of the three (3) lines in the "Allowance" subsection.

15. You must complete the subsection "Employment conditions" and answer the questions. For Quebec residents, also click on "Employment conditions - Quebec" and enter the requested information.

Your employment expenses will be entered by the program in federal form T777 and on line 22900 of the federal return. If you are a Quebec resident, the TP-59 form will be generated and the amount will be reported on line 207 of the Quebec return, with the appropriate code displayed on line 206.

NOTE: You must keep a record of all the expenses you incurred. This register must be kept for a period of six (6) years after the end of the tax year, as the CRA (and/or for Quebec residents, the MRQ) may request some of your documents.

For more information, please visit the following links:

For the CRA:

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-22900-other-employment-expenses/salaried-employees.html

[Fibrelady]

I'm sorry to take so long to get back to you Geo123 - it took me a long time and many stabs at it to get through all the information you sent me.  Thank you for your thoroughness. 

[Geo123]

Hello Fibrelady,

You are welcome.