This deduction allows employees of a transport business (such as truck drivers or railway employees) to reduce their total income by claiming their meal, lodging, and/or shower expenses paid while working away from home.
Usually, the most you’ll be allowed to deduct for a meal is 50% of its cost. You can only claim the cost of one meal every 4 hours up to a maximum of 3 meals in a 24-hour period.
There is, however, an exception to this rule. If you’re a long-haul truck driver, you can take advantage of a much higher meal deduction rate of 80%. This is because long-haul drivers regularly travel outside of their municipality (at least 160 km) to transport goods or passengers for long periods of time (at least 24 hours).
Note: If your employer pays a portion of your expenses through a non-taxable allowance or reimbursement, you’ll only be able to claim the amount that you paid out of pocket.
When deducting your lodging or shower expenses, be sure to keep a detailed list of your trips and keep all of your receipts in case the Canada Revenue Agency (CRA) requests to see them.
Note: If you’re a resident of Québec, you’ll also need to complete TP-66-V: Employment Expenses of Transport Employees.
Does my employer need to complete a section of form TL2 for me?
Yes. If you’re going to be claiming the cost of meals and lodging that you had to pay as a long-haul truck driver on your 2016 tax return, you’ll need to get your employer to fill out part 3 of form TL2. You can download and print a copy of the TL2 on the CRA's website.
Some of the information your employer will be asked to provide includes:
- The name of the collective agreement that governs your employment with the company
- The cost of subsidized meals that were made available to you
- The amount of allowance or repayment that you received for meals and lodging in 2016 (if applicable)
Once your employer has completed part 3 of this form, you can use this information to complete the TL2 page in H&R Block’s tax software. Make sure you keep a copy of the document your employer filled out for you with your records.
Where do I claim this?
Follow these steps in H&R Block’s tax software to file your 2016 taxes:
- On the PREPARE tab, click the LET'S TALK ABOUT 2016 icon.
- Select the checkbox labelled I was employed, then click the EMPLOYMENT icon. You will find yourself here:
- Under the EXPENSES heading, select the checkbox labelled, Claim for meals and lodging expenses (TL2), then click Continue.
- When you arrive at the page for your Meals/lodging expenses, enter your information into the tax software.
