T777 Forms: 1  
Federal forms: 

Protected B when completed
 
Statement of Employment Expenses T777

Use this form to calculate your total employment expenses on line 22900 of your 2023 Income Tax and Benefit Return or 2023 Income Tax and Benefit Return for Non-Residents and Deemed Residents of Canada.

For information on how to complete this form, including the capital cost allowance (depreciation) schedule for employees, see Guide T4044, Employment Expenses. Attach a copy of this form to your paper return.

Software Note

  • Use this form only if you are an employee and your employer requires you to pay expenses to earn your employment income.
  • Your employer must also complete form T2200, Declaration of Conditions of Employment, in order for you to deduct employment expenses from your income.


Eligible to claim the GST/HST rebate for the expenses on this form? (see GST370) (Claim?   Yes  No)
 
 
Expenses
 
GST taxable 12% HST
taxable		 13% HST
taxable		 14% HST
taxable		 15%HST
taxable		 Zero rated
& exempt		 Total
Accounting and legal fees  8862  1 
Advertising and promotion  8520  2 
Food, beverages, and entertainment expenses (Chapters 2 or 3)
   × 50% =
   × 50% =
   × 50% =
   × 50% =
   × 50% =  8523  3 
Lodging  9200  4 
Parking  8910  5 
Supplies (for example, postage, stationery, other office supplies)  8810  6 
Other expenses  9270  7 
Tradesperson's tools expenses (Chapter 7) (maximum $1,000)  1770  8 
Apprentice mechanic tools expenses  9131  9 
Musical instrument expenses (Chapter 6)  1776  10 
Artists' employment expenses (Chapter 6)  9973  11 
Subtotal  
Allowable motor vehicle expenses (from line 32 below)  9281  12 
Labour mobility deduction (see chart for this line on the form) (maximum $4,000)  1771  13 
Capital cost allowance for musical instruments (see Part B of this form)  1777  14 
Add lines 1 to 14. Subtotal =  15 
Work-space-in-the-home expenses (see chart for line 16 on the form) 9945 +  16 
Lines 15 plus line 16
Eenter this amount on line 22900 of your return.		 Total expenses 9368 =  17 
                                                    

Calculation of allowable motor vehicle expenses
 
Enter the year, make, and model of the motor vehicle used to earn employment income
Enter the nmber of kilometres you drove in the tax year to earn employment income  18 
Enter the total nmber of kilometres you drove in the tax year ÷  19 
Line 18 divided by line 19 =  20 
 
Enter the motor vehicle expenses you paid for:
GST taxable 12% HST
taxable		 13% HST
taxable		 14% HST
taxable		 15% HST
taxable		 Zero rated
& exempt
   Fuel (gasoline, propane, oil)  21 
   Maintenance and repairs  22 
   Insurance  23 
   Licence and registration  24 
   Capital cost allowance (see Parts A and B of this form)  25 
   Interest (Chapter 8)  26 
   Leasing (see Worksheet on the last page of this form)  27 
   Other expenses (please specify)  28 
   Add lines 21 to 28  29 
 
Line 29 multiplied by line 20 Employment-use portion =  30 
Enter the total of all rebates, motor vehicle allowances, and reimbursements for motor vehicle expenses you received that are not included in income. Do not include any repayments you used to calculate your leasing costs on line 27. -  31 
Line 30 minus line 31
Enter this amount on line 9281 in the "Expenses" area above.		 Allowable motor vehicle expenses =  32 
                                               
 
2
  Protected B when completed
Calculation of labour mobility deduction for an eligible tradesperson
                           
The labour mobility deduction provides eligible tradespeople and apprentices working in the construction industry with a deduction for certain temporary relocation expenses.
Before completing this section, see the “Labour mobility deduction” section in Guide T4044, Employment Expenses to help you determine if you are eligible to claim this deduction.

Complete lines 33 to 40 below for each eligible temporary relocation.
Include expenses incurred in the year or in the first 31 days of the following year.

Software Note

  • To add an eligible temporary relocation, please click the Add button below.
  • To delete an eligible temporary relocation, please tick the checkbox for each relocation and the click the Delete button below.

 
Eligible temporary relocation 1:
Eligible temporary relocation expenses carried forward from the previous year (1)  33 
Transportation expenses (one round trip per eligible temporary relocation by the taxpayer between the ordinary residence and the temporary lodging) +  34 
Meal expenses incurred by the taxpayer during the round trip between the ordinary residence and the temporary lodging +  35 
Temporary lodging expenses (2) +  36 
Add lines 33 to 36. Total eligible temporary relocation expenses =  37 
Employment income earned as an eligible tradesperson in the year at the temporary work location x =  38 
Temporary relocation expenses available for deduction in the year:

Enter whichever is less: line 37, line 38, or the amount you are claiming for this eligible temporary relocation.		 (maximum $4,000) -  39 
Line 37 minus line 39 Unused temporary relocation expenses carried-forward to the future year (3) =  40 
 
Enter the amount from line 39. If you have multiple eligible temporary relocations in the year, add the amount from line 39 for each eligible temporary relocation.
Enter this amount on line 1771 of page 1.		 Total labour mobility deduction for the year
(maximum $4,000)		 =  41 
Software Note
If the amount on line 41 is more than $4,000, or you simply want to claim an amount less than the calculated, please override the calcualted amount on line 39 above.
 
 
(1) An eligible temporary relocation expense does not include:
  • an expense that you have already deducted from income for any taxation year (such as the moving expenses deduction)
  • a labour mobility deduction that could have been deducted in a previous year
  • an expense that you are or were entitled to receive a reimbursement, allowance, or any other form of assistance for
When calculating your deduction for 2023, the eligible temporary relocation expenses that you can claim for 2022 are limited to 50% of the employment income from that relocation earned in 2023.
 
(2) Temporary lodging is an eligible temporary relocation expense if, throughout the period of the taxpayer’s temporary relocation, the taxpayer maintains their ordinary residence as their principal place of residence, and the ordinary residence remains available for the taxpayer’s occupancy and is not rented to any other person.
       
(3) You can carry forward your unused temporary relocation expenses from line 40 and deduct them from employment income earned at the same temporary work location in the following year. For more information, see Guide T4044, Employment Expenses.
 


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3
  Protected B when completed
Calculation of work-space-in-the-home expenses
 
Employment (business) use percentage (4)  % 
                                               
GST taxable 12% HST
taxable		 13% HST
taxable		 14% HST
taxable		 15% HST
taxable		 Zero rated
& exempt
Electricity, heat, and water  42 
Maintenance  43 
Insurance (commission employees only)  44 
Property taxes (commission employees only)  45 
Other expenses (please specify)  46 
Add lines 42 to 46 =  47 
 
Total employment-use amount (see example below) (4)
(line 47 multiplied by employment (business) use percentage)		  48 
Amount carried forward from the previous year +  49 
Line 48 plus line 49 Subtotal =  50 
 
Enter your employment income  51 
Enter the amount from line 25 of this form and any amounts from lines 20700 and 21200 of your return relating to this income this income. -  52 
Line 51 minus line 52 (if negative, enter "0") =  -  53 
 
Enter whichever amount is less:
amount from line 50 or line 53.
Enter this amount on line 9945 of page 1.		 Work-space-in-the-home expenses  54 
 
Line 50 minus line 53
(if negative, enter "0")		 Work-space-in-the-home expenses
available to use in future years		 =  55 
 

(4) You must calculate your employment-use amount.

Example of how to calculate your employment-use amount (line 48)

You are a salaried employee who worked from home using your dining room table. The dining room represents 12% of the total square footage of your house and is used for work for 40 hours out of a total 168 hours in the week.

You paid $2,400 for electricity, heat, water, and Internet and $12,000 for rent. You will enter $2,400 on line 42, $12,000 on line 46, and the subtotal of $14,400 on line 47.

To determine your employment-use amount, you must first calculate your employment-use percentage, as follows:
  (40 hours ÷ 168 hours) x 12% = 2.9%

Your employment-use amount is the subtotal amount of $14,400 from line 47:
  ($2,400 + $12,000) x 2.9% = $417.60.

Enter $417.60 on line 48.



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4
  Protected B when completed
Capital cost allowance (depreciation) schedule for employees

Part A - Classes 8, 10, 54 and 55
Sales tax paid on the purchase:   None  GST  12%HST  13%HST  14%HST  15%HST
1
Class number (5)		 2
Undepreciated capital cost (UCC) at the start of the year (6)		 3
Cost of additions in the year		 4
Cost of additions from column 3 that are accelerated investment incentive property (AIIP) or zero-emission vehicle (ZEV) (7) in service before 2024		 5
Proceeds of dispositions in the year		 6
UCC after additions and dispositions
(col. 2 plus col. 3 minus col. 5)		 7
Proceeds of dispositions available to reduce additions of AIIP and ZEV (col. 5 minus col. 3 plus col. 4)
(if negative, enter "0")		 8
UCC adjustment for current-year additions of AIIP and ZEV (col. 4 minus col. 7) multiplied by the relevant factor
(if negative, enter "0") (8)		 9
Adjustment for current year additions subject to the half-year rule
(1/2 x (col. 3 minus col. 4 minus col. 5) divided by 2)
(if negative, enter "0")		 10
Base amount for CCA
(col. 6 plus col. 8 minus col. 9)		 11
CCA
Rate
%		 12
CCA for the year
(col. 10 multiplied by col. 11 or a lower amount)		 13
UCC at the end of the year
(col. 6 minus col. 12)		  
 
(5) Class 8 includes musical instruments. Class 10 includes all vehicles that meet the definition of a motor vehicle, except for a passenger vehicle included in Class 10.1 (see Part B). In this chart, ZEV represents zero-emission vehicles and zero-emission passenger vehicles. A ZEV is a motor vehicle included in Class 54 or 55 that you acquired after March 18, 2019, and became available for use before 2028. A used ZEV acquired after March 1, 2020, that became available for use before 2028 is included in Class 54 or 55. An AIIP is certain property (other than ZEV) that you acquired after November 20, 2018, and became available for use before 2028. See Regulation 1104(4) for the definition of accelerated investment incentive property that may apply to certain additions. For more information, see Guide T4044.
 
(6) This amount must be reduced by the portion of any goods and services tax/harmonized sales tax (GST/HST) rebate received in the year that relates to CCA on the vehicle or musical instrument.
       
(7) Columns 4, 7, and 8 apply only to AIIPs and ZEVs that become available for use in the year.
 
(8) The relevant factors for properties available for use before 2024 are 21/3 (class 54) and 11/2 (class 55) for ZEVs, and 0.5 for the remaining AIIPs.
 
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5
  Protected B when completed
Capital cost allowance (depreciation) schedule for employees (continued)
 
For information on this schedule and details about Class 10.1 limits, see Guide T4044, Employment Expenses.
 
For information on accelerated investment incentive, go to canada.ca/taxes-accelerated-investment-income.

Part B - Class 10.1
  • List each passenger vehicle on a separate line.
Sales tax paid on the purchase:   None  GST  12%HST  13%HST  14%HST  15%HST

Date
accquired
(mm/dd/yyyy)
Cost of
vehicle
Vehicle is AIIP		 1
Class number		 2
Undepreciated capital cost (UCC) at the start of the year (9)		 3
Cost of additions in the year		 4
Proceeds of dispositions in the year		 5
Base amount for CCA (10)		 6
CCA Rate
%		 7
CCA for the year (col. 5 multiplied by col. 6 or a lower amount)		 8
UCC at the end of the year (col. 2 minus col. 7 or col. 3 minus col. 7) (11)
Yes
Total  
     
 
(9) Reduce the amount by the portion of any GST/HST rebate received in the year that relates to CCA on the vehicle.
       
(10) If you owned the vehicle in the previous year and still owned it at the end of the current year, enter the amount from column 2 in column 5.

If the vehicle is not an AIIP and you bought the vehicle in the current year and still owned it at the end of the current year, enter 1/2 of the amount from column 3 in column 5.

If the vehicle is an AIIP and you bought the vehicle in the current year and still owned it at the end of the current year, enter 3/2 of the amount from column 3 in column 5.

If you sold the vehicle in the current year and owned the vehicle at the end of the previous year, enter 1/2 of the amount from column 2 in column 5.

If you bought and sold a Class 10.1 vehicle in the current year, enter "0" in column 5.

 
(11) Recapture and terminal loss rules do not apply. Enter "0" in column 8 for the year that you sold or traded a class 10.1 vehicle.


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6
  Protected B when completed
Worksheet - Eligible leasing costs for passenger vehicles ****
                         
Total lease charges incurred in your current fiscal period for the vehicle  1 
Total lease payments deducted before your current fiscal period for the vehicle  2 
Total number of days the vehicle was leased in your current and previous fiscal periods  3 
Manufacturer's list price  4 
 
Year that the leases were entered into (see note 9, 10 and 11)   
 
Use a GST rate of 5% or HST rate applicable to your province.   
 
Amount 4 or ($42,353 + GST and PST, or $42,353 + HST), whichever is more (see note 9)
$  x 85% =  5 
 
[($950 + GST and PST, or $950 + HST)] (see note 10)
($  x amount 3) ÷ 30 =  6 
Amount 6: -   amount 2: =  7 
 
[($36,000 + GST and PST, or $36,000 + HST)] (see note 11)
$  x amount 1 = ÷ amount 5: =  8 
 
Eligible leasing cost: Amount 7 or 8, whichever is less (enter on line 27 above)    9 
**** Includes a vehicle that would qualify as a zero-emission passenger vehicle if you owned it.
 
         
Note 9: For leases entered into in 2022, it's amount 23 or ($40,000 plus GST and PST, or HST on $40,000), whichever is more. For leases entered into before 2022, it's amount 23 or ($35,294 plus GST and PST, or HST on $35,294, whichever is more.
Note 10: For leases entered into in 2022, amount 25 is equal to [($900 plus GST and PST, or $900 plus HST) multiplied by amount 22], divided by 30. For leases entered into before 2022, amount 25 is equal to [($800 plus GST and PST, or $800 plus HST) multiplied by amount 22], divided by 30.
Note 11: For leases entered into in 2022, amount 27 is equal to [($34,000 plus GST and PST, or $34,000 plus HST) multiplied by amount 20], divided by amount 24. For leases entered into before 2022, amount 27 is equal to [($30,000 plus GST and PST, or $30,000 plus HST) multiplied by amount 20], divided by amount 24.