With more Canadians working from home in the wake of the COVID-19 pandemic, the Revenue Canada (CRA) has simplified how employees can claim the costs of setting up a home office. This year’s income tax return.
CRA announced on Tuesday that people who work from home more than 50% of the time for at least four consecutive weeks by 2020 due to COVID-19 will be eligible to claim a home office expense deduction.
The agency said using the shorter eligibility deadline will ensure that more Canadians can benefit from the deduction.
According to the CRA, a “new temporary fixed rate method” will allow eligible Canadians to claim a $ 2 deduction for each day they work from home due to COVID-19 up to a maximum of $ 400.
Under this new method, people will not need the employer to sign certain documents for certification.
To simplify the claims process for Canadians, the CRA says it has made amendments to its work-from-home tax forms (Form T2200S and Form T777S) and has launched a calculator to assist with the calculation of eligible home office expenses. A list of all eligible home office expenses is available online.
The office expense deduction applies only to the 2020 tax year.
Additionally, the agency says employees with larger claims for home office expenses can still use the existing detailed method to claim a deduction if given priority.
The CRA reports that 174,210 Canadians have applied for indoor workspace deduction for tax year 2018, accounting for $ 271,866,000 or an average of $ 1,561 per person.
According to Statistics Canada, an estimated 2.4 million Canadians who do not normally work from home did so in October.
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