Claiming Home-Office Expenses In Your 2020 Taxes - Tax mondaq.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from mondaq.com Daily Mail and Mail on Sunday newspapers.
Was required to work from home by their employer.
The employee was required to pay for expenses related to the workspace in their home.
One of the following applies:
The employee’s home workspace is where they worked more than 50% of the time for a period of at least four consecutive weeks. This can be either a common area of the home or a designated room; or
The employee only uses their workspace to earn employment income
and the employee also uses it regularly and continually for meeting clients, customers, or other people in the course of their work. Note: the CRA has previously taken the position that a “meeting” means an in-person meeting (therefore a telephone call would not suffice). To date, the CRA has not announced any changes to this interpretation in light of COVID-19, particularly whether videoconference calls would be considered “meetings”, but it is anticipated some clarification will be provided prior to the filing deadline for 2020 income tax returns.
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The Canada Revenue Agency (CRA) recently released a new, simplified process for deducting home office expenses for the 2020 tax year, which will require employers to be prepared to work with those employees seeking to take advantage of the changes. The revisions, announced on December 15, were brought about by the dramatic impact that the COVID-19 pandemic has had on typical working life. For millions of Canadians, this is the first year in which they will be able to deduct certain expenses related to working from home. For the 2020 tax year only, employees who have worked from home for at least one month due to COVID-19 may deduct home office expenses using either the Temporary Flat-Rate Method or the New Detailed Method.