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taxes question
Pamela, are you around? I swear you should send me a bill, this is the third year in a row I've hit you up for information:)
My husband is a transport employee- CN Rail. This year he incurred lodging expenses, and he never has before, as he was working in a different department this year. 100% of his lodging expenses were reimbursed by the company.
I'm doing my taxes right now and it says we need receipts. We didn't keep them because in previous years, in different departments, lodging was paid upfront by the company and we didn't have anything to claim. Are we screwed? The paperwork submitted by the company said he got reimbursed for over $13,000 in lodging expenses, and if we can't claim that same amount because we don't have receipts will it end up being income? Are receipts reallly needed, because he was reimbursed 100% so they're not really a write-off anyway?
thanks!
Re: taxes question
First of all, are you sure that the lodging has been included in his income? If it was a straight reimbursement, I wouldn't think it should be included in his T4.
If it IS included in his income, I would still take the deduction. If you get asked for receipts, I would go back to payroll, and make them pull his expense reports - as they probably have copies of the receipts.
Let me know if this isn't clear and I can provide more info.
Thanks for answering! It's not included on his T4, it's included (and specifically referred to) on the claim for meals and lodging expenses form that his company filled out for him- $13,977.90 for lodging reimbursement. Transportation employees get to claim this stuff, but he's not really claiming it if it's been reimbursed, so I'm hoping the lack of receipts don't matter because it should be a wash from the government's POV? I think?
His company wouldnt have receipts because he wasn't required to submit them. It's a union agreement... long story. But they definitely don't have them and neither do we.
Ooo, good question. I'd like to know this one too.
What form did they fill out for him? I have never had to claim lodging and meals on my taxes (all fully paid by my company after I submit my expenses).
Did he receive a vehicle allowance from work?
Was it flat rate, or per km,
If it was flat rate, it should already be included in his T4, so he can deduct vehicle expenses (business portion of gas, depreciation, insurance, maintenance, etc).
If was per km, you have the option of including the mileage reimbursement into income (it should not be in his T4, but you'd need to check - if he gets both a flat rate and a per km, it might be included, in which case the previous paragraph applies). If it is not in his T4, you can either leave it not included as income, and not deduct expenses, or, if you are better off, you can include the mileage allowance as income, and deduct business portion of vehicle expenses.
Does that make sense?
Let me know where to send my bill LOL.
The form is simply called Claim for Meals and Lodging Expenses. It's for railway employees only, I think. It's a huge benefit to us- I punched that info into Quicktax last and that form alone gave us a $1700 refund, even with lodging reimbursed. Railway employees are given a daily meal tax deduction from the government when they're working, whether you actually buy your food or not. My husband packs a lunch and is able to claim $17 a meal, three meals per work day. However, the company needs to fill out a form stating that he's eligible for these deductions as a transport employee and that's the form I'm referring to- it has a bunch of info on it, including any money reimbursed.
It was reimbursed per km and not included on his T4, it was a separate form- thanks!!