If you were wondering if you’re eligible for Canada’s work from home tax deduction, the federal government has got your back.
Back in December, the Government of Canada acknowledged that many Canadians have been unexpectedly required to work from their homes in 2020 and 2021, thanks to the COVID-19 pandemic.
🏘️ Want to claim the home office expenses deduction, but prefer to keep it simple? Use our temporary flat rate meth… https://t.co/QbSvHPorBv— Canada Revenue Agency (@Canada Revenue Agency) 1612795509.0
In response, officials announced that home office expenses tax deductions would become available to more people and the process for claiming would become easier.
Now, eligible employees can get up to $400 back at tax time if they’re working from home.
To help individuals work out if they qualify for the deduction, the Government of Canada has set up a simple eligibility criteria form that allows Canadians to tick the boxes that apply to them.
You can mark a check alongside statements like “You worked from home in 2020 due to the COVID-19 pandemic” and “Your employer did not reimburse you for all of your home office expenses.”
Once you’ve responded yes or no to all of the statements, the website will let you know whether you’re likely to qualify for the tax deduction.
Canadians with costs of $2 per day or less can use the Temporary Flat Rate Method to claim, which allows for general home office expenses.
For those with more expensive or more complex expenses, the Detailed Method is the best way to claim.
The government’s list of approved expenses that can be deducted includes electricity, heating, water, the utilities portion (electricity, heat and water) of condo fees and internet access fees, among other things.