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How New CRA Rules Will Benefit You

Personal Tax Filing Deadline Fast Approaching (2020 Tax Year)

With the April 30th deadline to file your personal tax return fast approaching, we encourage you to contact us as soon as possible to prepare your 2020 personal income tax return.

Benefit of New Home Office Expense Deduction – (2020 Tax Year)

In 2020, many employees were required to work from home. As a result, CRA introduced a personal tax deduction for individuals working from a temporary home office.

New Temporary Flat Rate Method

If you worked from home (more than 50% of the time) for a period of at least four consecutive weeks, you are eligible to use this new method.
This new method will allow you to claim $2 per day for each day worked from home. Up to a maximum of $400 per individual.
Multiple people working from home in the same household can claim this deduction.

Detailed Method

According to the detailed method, you can claim specific home office related expenses incurred during the year.
To be eligible:
– You worked from home (more than 50% of the time) for a period of at least four consecutive weeks;
– You have a signed Form T2200S or Form T2200 from your employer;
– You would be required to calculate the total square footage of the office, square footage of the entire home and the percentage of use of the home office, if it is not a dedicated office space.
– Required to calculate your eligible home office expenses related to the office, (utilities, home internet fees, minor repairs related to the space). Keep these receipts in case of a CRA review.
– Not be reimbursed for the expenses by your employer.

This link provides the details released by CRA and a calculator you can use to determine your deductions: Canada Revenue Agency