How Canadians work has been shaken up a bunch in the last couple of years.
If you transformed a hobby into a side hustle or started working nine to five from home due to COVID restrictions, how you do your taxes has probably changed too.
While accounting for a new income stream or adding up WFH expenses may seem daunting, properly tackling tax season can be easier than you think. Plus, there's lots of support available — like having an H&R Block Tax Expert by your side.
Here's all you need to know to better understand how to file your taxes and maximize your return this year without breaking a sweat.
When Are Taxes Due In 2022?
Taxes are technically due on the usual April 30 deadline, but since that's a Saturday this year, you have until May 2 to file your taxes.
What WFH Deductibles Am I Eligible For?
If COVID forced you to work within your living space, you're probably entitled to more deductions than you think. It goes beyond office supplies. Internet, long-distance work calls, your rent and even utilities like heat and hydro can all be claimed.
How Do I Claim My Work-Related Expenses?
If you work from home because of COVID-related reasons, there are two processes to claim your work-related expenses.
The first is the temporary flat-rate method. If you worked from home for more than 50% of the time for four consecutive weeks or more in 2021, you can claim $2 for every day you worked at home (up to $500 or 250 days).
Since more than one person can claim the same workspace, there's no need to divide the amount if you live with someone who also works from home. Also, you don’t need any forms from your employer to back up your claim.
Then there's the detailed method, where you can get a little more nitty-gritty on your claims. This method requires filling in a few more forms, but if your home-office expenses are over $500, it’s the only way to claim the total you’re entitled to.
You'll first need the T2200S form, signed by your employer, to prove that you worked from home. Then you can calculate your deductions on the T777S form, based on a few factors like home size, office size and weekly hours on the job.
Quebec-based friends: note that there are a couple of different forms you'll need to fill out for either filing process.
What About My Side Hustle?
While you may have worked on your side hustle from home, it’s a different situation than if your employer required you to work from home due to COVID restrictions. As a result, the tax situation is a little different too, but (if you’re making money on your side hustle), you may still be eligible for some deductions you might not be aware of.
Kilometres driven for work-related reasons, some travel expenses and fees paid for advertising your business are fair game too. If you're unsure, chat with an H&R Block Tax Expert so that no potential deductibles slip through the cracks.
H&R Block has nearly 60 years of experience getting Canadians the biggest possible refunds, which might help your pockets feel a little heavier than expected when receiving your cheque or direct deposit.
Are There Other Ways To File My Taxes?
Tax season looks different for everyone, and it doesn't have to be scary. With H&R Block, there are a ton of options to file your taxes in a way that makes sense for you.
If you like working face-to-face, you can sit down and file in person at your nearest H&R Block office. If you prefer, you can drop off your tax documents at an H&R Block office, then a Tax Expert will let you know the next steps to complete your return.
For the WFH employee that also wants to file from home, another option is to send off your documents to an H&R Block Remote Tax Expert who'll complete them for you.
Those who like flying solo (but are comforted knowing help is available if needed) can take the reins with H&R Block's free online tax software.
Tax season looks a little different in 2022 than in previous years, thanks to ever-changing working conditions and side gigs you may have nurtured along the way.
Freelancing, running a small business or working from home are all understandable reasons to feel a little nervous about getting through tax time. But you can take away some of that stress knowing you're supported by the pros.
To find out more about filing your 2022 taxes with an H&R Block Tax Expert visit their website, or follow them on Facebook, Instagram and Twitter.
This content is for general informational purposes only and does not constitute financial, investment, legal, tax or accounting advice.
This article’s cover image was used for illustrative purposes only.