TL2 – Claim for Meals and Lodging Expenses

You can claim the cost of meals and lodging (including showers) if you meet all four of the following conditions:

• you work for an airline, railway, bus, or trucking company, or for any other employer whose main business is transporting goods, passengers, or both;
• you travel in vehicles your employer uses to transport goods or passengers;
• you regularly have to travel away from the municipality and metropolitan area (if there is one) where your home terminal is located; and
• you regularly incur meal and lodging expenses while away from the municipality and metropolitan area (if there is one) where your home terminal is located. This means that you must generally be away from home overnight to do your job.

For information on meal allowances and subsidized meals, see Information Circular IC73-21, Claims for Meals and Lodging Expenses of Transport Employees, and Guide T4044, Employment Expenses.

Even if you do not meet all of the above four conditions, you may still be able to claim the cost of meals and lodging you incur in the year. For example, you may be an employee whose main duty of employment is transporting goods, but your employer's main business is not transporting goods or passengers. If you meet the conditions listed under the section called "Travelling expenses" in Chapter 3 of Guide T4044, you will still qualify to use the simplified method of meal reporting (based on a per meal rate of $17 which includes sales tax) described in Chapter 4 of the guide. For more information about both sets of conditions, see Information Circular IC73-21.

You can also claim the cost of meals and lodging when you meet one of the following conditions:

• you work away from home for a railway company as a telegrapher or station agent in a relief capacity, or carrying out maintenance and repair work for the railway company; or
• you are a railway employee who works away from the municipality and metropolitan area (if there is one) where your home terminal is located. You also work at such a distant location that it is unreasonable for you to return daily to your home, where you support a spouse or common-law partner, or a dependant related to you.

Meal and beverage expenses for long-haul truck drivers are deductible at a rate higher than the 50% permitted for other transportation employees.

During eligible travel periods, meal and beverage expenses incurred are deductible at a rate of 80%.

You are a long-haul truck driver if you are an employee whose main duty of employment is transporting goods by way of driving a long-haul truck, whether or not your employer's main business is transporting goods, passengers, or both.

A long-haul truck is a truck or tractor that is designed for hauling freight, and has a gross vehicle weight rating of more than 11,788 kg.

An eligible travel period is a period during which you are away from your municipality or metropolitan area (if there is one) for at least 24 hours for the purpose of driving a long-haul truck that transports goods at least 160 kilometres from the employer's establishment to which you regularly report to work.

Deductible expenses include any Goods and Services Tax (GST) and Provincial Sales Taxes, or Harmonized Sales Tax (HST) the taxpayer paid on these expenses. He or she may be able to receive a rebate of the GST/HST he or she paid.

Note: a separate form must be completed for each employment period, each type of employment and each employer. The form must be signed by each employer or by an authorized person.

To calculate the meal expenses, the taxpayer can use one of these methods:

The detailed method – The detailed method means that he or she has to keep a record book itemizing each expense. He or she also has to keep receipts to support the amount he or she deducts.

The simplified method – According to this method a flat rate of $17 for each meal is allowed, up to a maximum of $51 a day. As well, drivers who go to the United States and incur meal expenses can now deduct $17 US for each meal, up to a maximum of $51 US per day, and then convert this amount into Canadian dollars.

However, the driver must keep a detailed list of all trips made, although it is not necessary to keep the receipts that justify the claim for the meals.

The batching method – When the taxpayer is part of a work crew, such as on a train, his or her employer may provide him or her with cooking facilities. If he or she buys groceries and cook meals either by himself or herself or together, each person can claim up to $34 for each day. As long as he or she does not claim more than this amount, he or she does not have to keep receipts.

If the taxpayer uses the simplified method, the program automatically calculates the deductible amount at the rate of $17 per meal. He or she just has to indicate the number of meals.

The most he or she can deduct for meal expenses is 50% of his or her claim.

The taxpayer can deduct his or her lodging expenses. He or she must keep receipts to support the amount he or she deducts.

Under the proposed modifications, the cost of food and beverages incurred by long-haul truck drivers will be deductible at a higher rate than the rate allowed for other transport employees (i.e., 50%). It is proposed to increase progressively the deductible portion of the expenses incurred during eligible periods in the following manner:

• 60% of the expenses incurred on or after March 19, 2007, and before January 1, 2008;
• 65% of the expenses incurred for 2008;
• 70% of the expenses incurred for 2009;
• 75% of the expenses incurred for 2010; and
• 80% of the expenses incurred after 2010.

Taxpayers are long-haul truck drivers if they are employees whose main duty of employment is transporting goods by way of driving a long-haul truck, whether or not their employer's main business is transporting goods, passengers, or both.

A long-haul truck is a truck or tractor that is designed for, and primarily used for, hauling freight, and has a gross vehicle weight rating of more than 11,788 kg.

An eligible travel period is a period during which the taxpayers are away from their municipality or metropolitan area for at least 24 hours for the purpose of driving a long-haul truck that transports goods at least 160 kilometres from the employer's establishment to which the taxpayers regularly report to work.