TL2 Claim for Meals and Lodging Expenses

All You Need to Know: TL2 Claim for Meals and Lodging Expenses Form

When you or your employer incur expenses during work-related travels, it's crucial to account, verify, and ultimately reclaim these costs for tax purposes. One such tool commonly used in Canada for these transactions is the TL2 form. 

What Is a TL2 Form?

This form, also known as the Tax Deduction Form for Meals and Lodging, is an official document from the Canada Revenue Agency (CRA). The Canadian government uses it to handle tax deductions related to meals and lodging expenses incurred by employees during business travels.

Importance of the TL2 Form

Why do you need a TL2 form? It's the official way for Canadian employees to claim travel expenses incurred during business-related trips. These expenses often include meals and lodging costs. It's a crucial document because it allows the Canadian government to track and manage the tax deductions related to these costs. And for the employees or their employers, correctly filing this form could potentially result in substantial tax savings.

How to Fill Out Form TL2

Here’s a step-by-step guide on how to fill out the TL2 claim for meals and lodging expenses form template:

1. Begin by entering your personal details in Part 1, which includes your last name, first name, and social insurance number, along with the period of employment during the year from start to finish.
2. Choose your method of calculation—simplified, detailed, or batching—for the expenses.
3. In Part 2A, summarize your trips and expenses not including eligible travel periods for long-haul truck drivers. 
4. Specify the number of days, number of trips, and average number of hours per trip. Also, identify your home and away terminals. 
5. Under service classification, describe your role or job title. 
6. Record the number of meals bought and their total cost in Canadian dollars, and do the same for lodging and showers. 
7. Calculate the totals for both.
8. For long-haul truck drivers, use Part 2B to detail your trips and expenses during eligible travel periods. This section is similar to Part 2A but will include calculations for an 80% deduction rate on meals.
9. Enter the average length of time you spent away from your employer’s home terminal under the first item in the form instructions. This section clarifies the establishment where you report for work.
10. If applicable, specify your class of service in the transport sector under the second item in the form instructions. This could include positions like engineer, conductor, or machine operator.
11. After you’ve completed your details, calculate the allowable amounts for meal and lodging expenses. 
12. Begin by calculating the total amount paid for meals and subtract any non-taxable amounts you might receive. 
13. The remainder should be multiplied by 50% for regular employees or 80% for long-haul truck drivers. 
14. Perform similar calculations for lodging expenses, summing up the total amounts paid and subtracting any non-taxable amounts received.
15. Finish your section of the form by certifying that the information provided is correct and complete. Sign and date this section to affirm the truthfulness of your claims.
16. Part 3 is to be completed by your employer, who will verify the nature of the business—whether it transports goods, passengers, or both—and provide additional employment details relevant to your claim.
17. Keep all receipts and additional documentation attached, as required, to support your claim in case the Canada Revenue Agency requests these for verification.