The T777, formally known as the Statement of Employment Expenses, is the form Canadian employees use to claim unreimbursed work-related expenses on their tax return. If your job required you to pay for certain costs out of pocket — and your employer didn't cover them — this form may help reduce your tax bill. Here's what the T777 covers, who should file one, and how to complete it.
What is form T777?
The T777 is a Statement of Employment Expenses — a tax form that lets employees deduct work-related costs their employer did not reimburse. You file it with your annual tax return to reduce your taxable employment income.
The T777 is typically submitted alongside the T2200 (Declaration of Conditions of Employment), which your employer completes to confirm your job required you to incur certain expenses. If your employer did not require you to pay those costs, you cannot claim them.
Eligible expenses include:
Professional fees — accounting and legal fees
Travel costs — motor vehicle expenses, lodging, parking, and travelling expenses
Daily expenses — meals and entertainment, supplies, long-distance phone charges
Workspace costs — workspace-in-the-home expenses, office rent, interest and leasing costs
Other — licence and bonding premiums, training costs, salaries paid to an assistant or substitute, and equipment leasing
T2200 vs T777: how the forms work together
The T2200 (Declaration of Conditions of Employment) and the T777 (Statement of Employment Expenses) serve different purposes but are filed together.
Your employer completes the T2200. It confirms your job required you to pay certain expenses out of pocket and that you were not reimbursed. You cannot file a T777 without a signed T2200.
The T777 is the form you complete. Using the information from your T2200, you list and calculate the eligible expenses you want to claim. Think of the T2200 as the permission slip and the T777 as the expense report.
Who needs to file a T777?
You may need to file a T777 if you meet all of the following conditions:
You are an employee — self-employed individuals claim business expenses differently and do not use the T777.
Your employer required you to pay certain expenses — you must have a signed T2200 confirming this.
You were not reimbursed — if your employer paid you back (in cash or otherwise), those expenses cannot be claimed.
Common roles that file a T777 include commission salespeople, salaried employees who travel for work, truck drivers, employed musicians, tradespeople, and employees who work from home. A comprehensive eligibility guide is available in the Canada Revenue Agency's (CRA) Employment Expenses guide, T4044.
What expenses can you claim on a T777?
The T777 has several sections for different types of eligible expenses. In the main expenses section, you enter the amounts you are claiming on your income tax return. Depending on your situation, you may be able to claim:
Accounting and legal fees
Advertising and promotion costs
Meals and entertainment
Lodging and parking
Supplies
Long-distance phone charges and airtime
Office rent
Salaries paid to an assistant or substitute
Licence and bonding premiums
Training costs
Equipment leasing
Apprentice mechanic tools, tradesperson tools, artist employment expenses, and musical instrument costs are also claimable. Motor vehicle expenses, workspace-in-the-home expenses, and capital cost allowance (CCA) each have their own calculation sections on the form.
How to calculate motor vehicle expenses
If you use your personal vehicle for work, you can claim a portion of your vehicle costs on the T777. You need to include the make, model, and year of the vehicle and the total kilometres driven during the tax year.
Eligible vehicle expenses include:
Operating costs — fuel, maintenance, and repairs
Ownership costs — licence and registration fees, insurance
Financing costs — interest on a car loan, leasing costs, and capital cost allowance
The CRA prorates your claim based on the percentage of driving done for employment versus personal use.
Example: You drove 25,000 km total and 10,000 km for work — your employment-use percentage is 40%. If your total vehicle expenses were $8,000, you can claim $3,200.
Keep a detailed logbook of your odometer readings and work-related trips throughout the year.
How to calculate workspace-in-the-home expenses
If you work from home or use part of your home as an office, you can claim a proportional share of your household costs. Eligible expenses include electricity, heat and water, and maintenance. Property taxes and home insurance are deductible only if you earn commission income — salaried employees cannot claim them (and no employee can deduct mortgage interest or capital cost allowance on their home). Renters can also claim a portion of their rent.
To calculate your claim, divide the area of your workspace by the total area of your home. Apply that percentage to your eligible household expenses.
Example: Your home office is 15 square metres and your home is 150 square metres — your work-use percentage is 10%. If your eligible household expenses total $12,000, you can claim $1,200.
Unused workspace-in-the-home expenses can be carried forward to future tax years if your claim exceeds your employment income for the current year. You cannot, however, claim expenses from previous or future years directly.
What is capital cost allowance (CCA)?
Capital cost allowance (CCA) lets you deduct the declining value of certain assets you use for work, such as a vehicle or musical instrument. Rather than claiming the full purchase price in one year, CCA spreads the deduction over several years based on a set depreciation rate.
The T777 has two CCA sections:
Part A — covers Classes 8, 10, 54, and 55 (tools, general vehicles, zero-emission vehicles)
Part B — covers Class 10.1 (passenger vehicles costing more than the prescribed limit)
To claim CCA, you must meet the general eligibility conditions for employment expense deductions, and your employer must confirm on your T2200 that you were required to provide and pay for the asset. CCA is commonly claimed by commissioned sales employees and employed musicians who use their own vehicles or instruments as a condition of employment. Consult the CRA's guide to CCA classes for details.
How to claim a GST/HST rebate on employment expenses
If the employment expenses you claimed on your T777 included Goods and Services Tax (GST) or Harmonized Sales Tax (HST), you may be eligible for the Employee GST/HST Rebate. This allows you to recover a portion of the sales tax you paid on eligible expenses.
To claim the rebate, complete Form GST370 and report the amount on line 45700 of your tax return. Your employer must be registered for GST/HST for you to qualify.
How to fill out and file your T777
Before you start, request a completed and signed T2200 from your employer. This form confirms which expenses you were required to pay and is needed to support your T777 claim.
Consult the T4044 guide for comprehensive instructions on claiming employment expenses. When filling out the form:
Enter accurate figures for each eligible expense category
Deduct any rebates, reimbursements, and allowances from your totals
Complete the motor vehicle, workspace-in-the-home, and CCA calculation sections separately before transferring the amounts to the main expenses section
Keep all receipts, logbooks, and records in case the CRA requests supporting documentation
You can file electronically using CRA-certified tax software through NETFILE or EFILE, or download the PDF from the CRA website and submit a paper return.
