If you happened to be one of many Canadians working from home last year at the start of our first lockdown, you could be eligible for a tax break up to $400! Here’s how it works:
If you worked from home more than 50% of the time over a period of at least four consecutive weeks in 2020 due to COVID-19, you can claim the home office expenses deduction for 2020. The use of a shorter qualifying period will ensure that more employees can claim the deduction than would otherwise have been possible.
A new temporary flat rate method will allow eligible employees to claim a deduction of $2 for each day they worked at home in that period, plus any other days they worked from home in 2020 due to COVID-19 up to a maximum of $400. That’s it, that’s all.
Best part? It’s really, really easy. Anyone that’s spent more than 12 hours on the phone with CRA knows just how important that is!
To simplify the process for employees choosing the detailed method, the CRA launched today simplified forms (Form T2200S and Form T777S) and a calculator designed specifically to assist with the calculation of eligible home office expenses.
Full details here.
