QuickBooks HelpQuickBooksHelpIntuit

What does "Limit expenses to commission income?" mean in ProTax?

by Intuit Updated 10 months ago

Issue

You have selected Yes to the question Limit expenses to commission income? but the amount from the Commission income section is not going to T777:

PCG_CA_Ext_05062022_1.JPG

Limit expenses to commission income? means Are you claiming employment expenses as a salaried employee or commission employee?



What next?

If the answer is No, then you are claiming employment expenses as salaried employee and should use amounts from the Salary section of T777 details.

If the answer is Yes then use the greater of the Commission or Salary sections, as its more beneficial.

In some cases, the Commission section amount will be greater. In other cases, the Salary section amount will be greater. ProFile puts the higher amount in T777, as per example in the CRA - T4044 Employment Expenses guide.



Example

As an example, review the "Andrew" case from the CRA T777 guide:

PCG_CA_Ext_05062022_2.JPG

Sign in now for personalized help

See articles customized for your product and join our large community of QuickBooks users.

More like this