Here's How To Get Cash Back On Your Taxes Just For Working From Home In Canada
Make sure you have your receipts. 💰👇
A Zoom meeting. Right: The Canada Revenue Agency Headquarters.
If you're one of the folks who spent some time working from home last year, you can actually save a little bit of money on your taxes.
According to the Canada Revenue Agency, there are two ways to claim home office expenses on your 2021 tax return. The first is the temporary flat rate method. This one is the most simple and does not require your employer to do any legwork.
If you worked from home more than 50% of the time, or at least four weeks in a row because of COVID-19, you can claim $2 for every day you worked from home in that period. And that's it! Just input those days into the T77S form and you're golden. Just keep in mind that the maximum claim amount for 2021 is $500 — which is $100 more than last year.
Did you work from home in 2021?\n\n You may be able to claim certain home office expenses!\n\nHere's what you need to know about this deduction https://ow.ly/f86V50HGY3R\u00a0 exclamation mark #CdnTax #WorkFromHome #Covid19pic.twitter.com/dQ6LoCg8S7— Canada Revenue Agency (@Canada Revenue Agency) 1643725503
The details method is just that, more detailed. This is where you can claim a number of expenses used toward your home office, but requires extra forms on your and your employers' part. Not only do you have to fill out a T777 or T777S form noting the specific costs, but your employer must also fill out a T2200S or Form T2200.
It also requires you to have receipts and documents to back up the expenses you're claiming. So, while it's a bit more work than the simplified method it allows you to get the exact tax rebate you are owed for setting up a home office and working from home.
The government has a list of approved expenses that can be deducted using the detailed method, which includes everything from electricity, heating, and water, to minor repairs and maintenance — and even rent for the house or apartment that you're living in.
However, you cannot claim any mortgage payments or interest, furniture, capital expenses (like major renovations), or wall decorations.
But there are other ways for you to save money at tax time, whether you have a home office or not. Especially if you're a student or even a new homeowner. So do the research, because the savings could be significant.