T777: expenses total on line 9368, then line 22900, T2200 first

What can salaried and commission employees claim on each T777 line?

The 2025 T777 (T777 E (25)) has 14 expense lines, a work space line and a total. Line 15 adds lines 1 to 14, line 16 adds the work space in the home amount, and line 17 (code 9368) is the total your client enters on line 22900 of the T1 canada.ca. Which lines your client can use depends on how they're paid canada.ca.

Supplies have to be used up directly in the work: stationery, toner, ink cartridges, disposable masks and gloves count; briefcases, calculators and special clothing don't canada.ca. Commuting between home and work is personal, and the CRA says most employees can't claim employment expenses at all canada.ca.

The legal list is closed. Subsection 8(2) of the Income Tax Act allows only the deductions section 8 permits, so an expense that doesn't fit a paragraph (8(1)(f) for salespeople, 8(1)(h) and (h.1) for travel and vehicles, 8(1)(i) for supplies, rent and assistants) isn't deductible however job related it feels laws-lois.justice.gc.ca.

What the T2200 has to confirm before your client files

Subsection 8(10) denies a sales, travel, vehicle, office rent, assistant or supplies deduction unless the employer confirms in prescribed form that the conditions were met laws-lois.justice.gc.ca. That form is the T2200. Your client keeps it with their records and doesn't send it in; a paper filer attaches only the T777 canada.ca. How employers fill it in is on the T2200 page.

For a salaried employee's vehicle claim, the CRA wants all four: normally required to work away from the employer's place of business or in different places, required by the contract to pay the vehicle costs, no tax free allowance for them, and a signed T2200 canada.ca. Travel costs other than the vehicle (meals, lodging, fares) follow the same pattern.

A commission employee needs five conditions: required to pay their own expenses, normally working away from the employer's place of business, paid wholly or partly by commissions on sales or contracts negotiated, no tax free travel allowance, and the T2200 canada.ca. Commissions show in T4 box 14 under code 42; see T4 box 14.

Reimbursed costs are out. A partial reimbursement leaves the unreimbursed part claimable, and vehicle allowances and reimbursements that weren't included in income come off on line 31 of the vehicle chart canada.ca.

How does the commission cap change the claim?

Under paragraph 8(1)(f), a salesperson's expenses can't exceed the commissions received in the year, and capital outlays are excluded laws-lois.justice.gc.ca. The CRA's reading: everything except vehicle interest and CCA is capped at commissions, so those two are added on top canada.ca.

The CRA's own example in Guide T4044 shows why you run both routes. A commission employee with $9,000 of expenses and $5,000 of commissions claims $7,000 as a commission employee ($5,000 capped, plus $1,500 of CCA and $500 of interest). Claimed as a salaried employee, the same facts give $8,000, because the salaried rules have no commission ceiling on the allowable items canada.ca. Your client can pick the route that gives the larger deduction.

Work space in the home has a separate ceiling. Line 53 limits it to employment income after the other T777 expenses, registered pension plan contributions (line 20700) and dues (line 21200), and line 55 carries the excess to the next year canada.ca. The home office rules are on our 2025 home office page.

How much can a salaried employee claim for a car bought in 2025?

Your client is a salaried sales engineer in Ontario. The contract requires them to drive their own car to client sites and pay the costs, there is no allowance and the employer signed the T2200. In March 2025 they bought a new car for $45,000 plus HST with a loan, and drove 30,000 km in the year, 18,000 for work. Commuting kilometres sit in the 12,000 personal.

Because the price before tax is over the $38,000 ceiling for 2025, the car goes in class 10.1 at $38,000 plus 13% HST, a capital cost of $42,940, the same figure the CRA uses in Guide T4044 canada.ca. On Part B of the 2025 T777, a car that qualifies as reaccelerated investment incentive property (acquired after 2024) enters 3/2 of its cost in the base column, at 30% canada.ca. The form still calls this a proposed change, but it is law now: Regulation 1104(4.01) defines the property as acquired after 2024 and available for use before 2034, excluding only classes 54 to 56 laws-lois.justice.gc.ca.

CCA is optional, so your client can claim any amount from zero to $19,323. Claiming none drops line 30 to $8,120 × 60% = $4,872.00 and leaves $42,940 of UCC for later years. Claiming the full amount leaves UCC of $42,940 − $19,323 = $23,617 to open 2026, where 30% gives $7,085.10 before the 60% employment share.

For a car bought in 2026, use the 2026 limits Finance Canada announced in January: $39,000 before tax for class 10.1, $350 a month of interest and $1,100 a month for new leases canada.ca. More on the ceiling at class 10.1 limit 2026. The kilometres have to come from a vehicle logbook.

Which CCA classes go on the back of the T777?

The employee CCA schedule only has room for vehicles and musical instruments. Part A takes classes 8, 10, 54 and 55, and Part B lists each class 10.1 passenger vehicle on its own line canada.ca. There is no line for a laptop or a phone: a commission employee deducts lease payments on those, and a salaried employee can't deduct them at all canada.ca.

Class 10.1 has two quirks that catch people. In the year your client sells or trades the car, Part B takes half of the opening UCC as the base and enters $0 as closing UCC, because recapture and terminal loss don't apply. A car bought and sold in the same year gets no CCA canada.ca. Any GST/HST rebate received on the CCA reduces the opening UCC that year. For other 2025 first year factors, see the accelerated investment incentive page.

What can tradespeople, musicians and artists claim on lines 9 to 14?

The tool figures are from Guide T4044 for 2025: the threshold of $1,471 is tied to the Canada employment amount, and the deduction tops out at $1,000 canada.ca. The labour mobility caps are printed on the form canada.ca; the details are on the labour mobility page.

A musician whose employer requires them to provide the instrument can deduct maintenance, rental and insurance plus CCA, but never the instrument's cost, and only up to the employment income from playing laws-lois.justice.gc.ca. An artist's $1,000 or 20% limit is reduced by any instrument costs and vehicle interest and CCA claimed for the same work, and unused amounts carry forward canada.ca.