Canadians Can Now Get Up To $500 Back From The Feds At Tax Time For Working From Home

Canadians who have been working from home during the COVID-19 pandemic can get some money back from the feds at tax time — and it's considerably more than last year.

On February 14, the Canada Revenue Agency shared a notice announcing that the feds have extended the temporary flat rate method so that Canadians have an easier way to deduct home office expenses for the 2021 tax year.

It means eligible employees — like last year — will be able to claim a tax deduction of $2 for each day they worked at home during 2021 due to the pandemic.

What is different, though, is that Canadians can now claim even more money back.

This year, workers can get up to a total of $500 back across 250 days, which is up from $400 across 200 days last year.

Eligibility criteria for both the temporary flat rate method and detailed method have not changed.

"Employees who were not required to work from home in 2021, but who worked from home because their employer gave them the choice to do so, are still considered to have worked from home due to COVID-19," the CRA confirmed.

Days that you worked full-time and part-time hours from home can be considered a workday, although days off, sick days, vacation days and other absence days can't be counted.

You will not qualify for the tax rebate if your employer is already covering your work-from-home expenses.

If your expenses add up to more than $500, you can claim back money via the detailed method instead.

The government has a list of approved expenses that can be deducted this way, which includes electricity, heating, water, the utilities portion (electricity, heat, and water) of condo fees, internet access fees, maintenance, minor repair costs and even "rent paid for a house or apartment where you live."

However, things like mortgage payments, furniture and decorations are not included.

Simplified online forms are available online to help workers navigate this claiming process.

In 2020, the federal government acknowledged that many Canadians had been unexpectedly required to set up their workspace in kitchens, bedrooms and living rooms due to the pandemic.

In response, the CRA made the home office expenses tax deduction available to more people and made the process for claiming expenses on personal income tax returns easier.

This article's cover image was used for illustrative purposes only.