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February 27, 2022
Question

How do I add legal fee deduction paid for my severance?

  • February 27, 2022
  • 1 reply
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    1 reply

    March 14, 2023
    1. Sign in using your TurboTax Online Account.
    2. Continue to finish building your tax profile and T4 Slip.

    In Income & work-related expenses. When answering tax situations, click "yes" if you work in 2022, and tick the box "I was employed”, “have T4 Employment Income” and “have expenses related to employment”

     

    1.  On the top right corner, click Find. (Should be visible after completing tax profile.)
    2. Type T777 Statement of Employment Expenses.
    3. Select, then press Go.

    TurboTax Online will display this:

    You may be able to claim certain expenses you paid to earn employment income if you meet both conditions below:

    i)Your employment contract requires you to incur these expenses as part of your employment; and

    ii)you did not receive a non-taxable allowance for expenses paid (an allowance not reported on your T4 slip).

    1. Select "Yes"

    TurboTax only allows you to claim employment under one selection:

    • I received form T2200 - Declaration of Conditions of Employment from my employer and/or I want to claim the Labour Mobility Deduction
    • I received form T2200S - Declaration of Conditions of Employment for Working at Home Due to COVID-19 from my employer.
    • I didn't receive either form from my employer but work from home at least 50% of the time for a period of 4 consecutive weeks or more in 2022 and was required to pay for expenses related to your home workspace that weren't fully reimbursed by your employer.

    If none of the above applies to you, then you are not eligible for employment expenses.

     

    1. If you receive form T2200 from your employer select, "I received form T2200 - Declaration of Conditions of Employment from my employer and/or I want to claim the Labour Mobility Deduction".
    2. Continue, then click the box, "Other Employment Expenses".
    3. Select "yes" or "no" if eligible for GST/HST rebate. Continue. 
    4. If applicable, select “yes” or “no” if you want to limit expenses to your commission income.
    5. On the Expenses table, enter the amount on the box of Accounting and Legal fees. Continue.

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