Travel expenses include food, beverage, lodging and transportation (such as airplane, train, bus, etc.) expenses but not motor vehicle expenses.
You can deduct travelling expenses on your personal tax return as long as you meet all of the following conditions:
- You were normally required to work away from your employer’s place of business or in different places.
- Under your contract of employment, you had to pay your own travel expenses.
- You did not receive a non-taxable allowance for travel expenses. Generally, an allowance is non-taxable as long as it is a reasonable amount.
- You keep with your records a copy of Form T2200, Declaration of Conditions of Employment, which has been completed and signed by your employer.
Enter your claim for deductible transportation expenses (such as airplane, train, bus, etc.) on the “Other expenses” line of Form T777, Statement of Employment Expenses.
You can deduct food and beverage expenses if your employer requires you to be away for at least 12 consecutive hours from the municipality and the metropolitan area (if there is one) of your employer’s location where you normally reported for work.
The most you can deduct for food and beverage expenses is 50% of the lesser of:
- the amount you actually paid
- an amount that is reasonable in the circumstances
The 50% limit also applies to the cost of food and beverages you paid for when you travelled on an airplane, train, or bus, as long as the ticket price did not include these amounts.
If you are a transportation employee, you may also be able to claim expenses for meals and lodging (including showers).
If you would like more information or have any questions, feel free to contact us at 780.466.6204, or click here to send us an email.
Heather Bowie, CPA, CA
Heather Bowie joined KWB in March 2019. Heather received her Bachelor of Commerce from the University of Alberta in 2003. She articled with Grant Thornton during which time she received her CA designation in 2006. Over the years, Heather received a variety of experiences including working as an online facilitator for the CA program, working in industry as well as a practice reviewer for CPA Alberta.
Heather works part-time, is married and has two girls. Away from work, Heather and her husband own an HVAC business in Sherwood Park allowing her to understand business from both the client and the accountant perspective. In her spare time Heather enjoys attending her girls sporting events and dance performances, keeping active and playing board games.