Canadians may be eligible to claim a deduction on their personal income tax return if they were forced to work more than 50 percent of the time from home for at least four consecutive weeks, the Canada Revenue Agency (CRA) said.
The new “temporary flat rate” method, which allows Canadians to claim a tax deduction for home office expenses, will allow workers who have not had their expenses reimbursed by employers to claim $2 per day for each day they have worked from home in 2020. An individual may claim a maximum of $400 (200 working days) through this method.
“The temporary flat rate method and the new user-friendly calculator will make it easier for more Canadians to claim the deductions and is one more demonstration of the CRA’s commitment to ensuring our tax system meets the needs of Canadians.”
Workers who choose the simplified process are not required to calculate the size of their workspaces or keep documents to support their tax deduction claim.
“Today’s announcement is a ‘win-win’ for Canadian businesses and workers alike. It provides a fair and straightforward way for millions of workers, forced to work from home by the pandemic, to claim tax deductions for which they are eligible. Waiving the employee’s need for a T2200 or T2200S will save employers over $194 million collectively, while being able to focus more intently on critical business needs,” said Peter Tzanetakis, president of the Canadian Payroll Association.
This new method can only be used for the 2020 tax year.
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