T2200 – Conditions of Employment

If you are an employee who works from home or incurs job-related expenses, the T2200 form plays an essential role at tax time. It confirms that your employer requires you to cover certain expenses as part of your job, which may allow you to deduct eligible costs on your tax return.

At Optimize, we use your T2200 to help determine whether you can claim employment expenses and to ensure your deductions align with CRA guidelines. Understanding what the T2200 supports can help you plan ahead for tax savings and keep better records of your work-related costs.

The Foundation of Employment Expense Deductions

The T2200, officially titled Declaration of Conditions of Employment, is completed and signed by your employer to verify that certain employment conditions existed. It does not grant a deduction by itself — instead, it enables you to claim eligible expenses using form T777 on your personal tax return.

Your T2200 may support deductions for:

• Home office expenses: a portion of utilities, rent, maintenance, or internet if you work from home.

• Vehicle expenses: if you’re required to use your own vehicle for work and are not reimbursed.

• Supplies and equipment: such as stationery, cellphone use, or other out-of-pocket items needed for your role.

• Other job-specific costs: including tools or allowable travel expenses.

The T2200 is not submitted with your tax return, but should be kept in case the CRA requests it for verification.

Why the T2200 Matters in Your Financial Plan

While the T2200 is a form your employer completes, it has wider implications for your personal tax planning. It gives you access to deductions that can lower your taxable income, increase your refund, or reduce the amount of tax you owe.

Learn how to read a T2200 form to better understand what conditions your employer has confirmed and how those details affect your ability to deduct expenses.

This matters when you are deciding whether to:

• Deduct home office or vehicle expenses related to your employment.

• Keep track of work-related supplies and services you personally pay for.

• Assess whether your job conditions support filing a T777 for employment expenses.

• Plan your withholdings or tax instalments to reflect deductible out-of-pocket costs.

For example, if your T2200 confirms that you were required to work from home and pay your own internet and utilities, you may be eligible to deduct a percentage of those expenses based on workspace size and usage.

Learn how to read a T2200

Understanding your T2200 form isn’t just about having your employer sign off — it’s about knowing what you’re eligible to claim and making sure your tax return reflects those work-related costs. If you work from home, travel for work, or use your own resources to perform your job duties, the T2200 opens the door to potential deductions.

At Optimize, we believe reading and using your T2200 effectively can lead to meaningful tax savings. This article breaks down how to interpret your T2200 and what information supports a valid employment expense claim.

Employer and Employee Information

This section confirms who the form is for and the employment relationship being declared.

Employer’s name and address
Used by CRA to identify your workplace and confirm the conditions under which you’re employed.

Employee’s name and SIN
Confirms that the signed T2200 belongs to you and matches your tax return.

Tax year
Indicates the year your employer is certifying conditions existed for you to incur expenses.

Job title and description
Outlines your role and responsibilities, helping CRA assess whether expense claims are reasonable and necessary.

Conditions of Employment

This section confirms which expenses you were required to pay to carry out your job.

• Did you work from home?
  Indicates whether your employer required you to maintain a workspace in your home as a condition of employment.

• Did you travel to perform duties?
  Verifies whether you had to travel away from your regular work location to do your job.

• Did you use a personal vehicle?
  States whether your own vehicle was needed for work and not reimbursed.

• Did you purchase supplies or pay for phone/internet?
  Details whether you had to cover these costs yourself and whether they were reimbursed.

Eligible Expense Categories (Confirmed by Employer)

These categories reflect the areas of expense you may be entitled to deduct on your tax return.

• Work-space-in-the-home expenses
  Can be claimed if your employer confirms that you were required to maintain a home office to do your job.

• Vehicle expenses
  Permitted if the T2200 confirms that you had to use your own car for work and were not fully reimbursed.

• Supplies and equipment
  Includes expenses for office supplies, cell phone bills, or internet used for work, if paid out-of-pocket and not reimbursed.

• Meals and entertainment (commission employees only)
  Only applicable if you earn commission and meet certain CRA requirements.

Additional Notes You May See

Depending on your employment type, your T2200 may include extra confirmations.

• Commissioned employee status
  Allows for broader deductions such as promotion costs or licensing fees.

• Reimbursement status
  Your employer must declare whether they reimbursed you for expenses. If they did, you cannot claim them.

• Employment contract conditions
  Some T2200s reference that certain conditions are laid out in writing as part of your contract.