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COVID tax break - Do you qualify?

By: Tyler Glen
Posted: July 23, 2020 05:57

Working from home will help in a big way at tax time.

Piggy Bank

BONUS if you worked from home during COVID?

If you worked from home during the pandemic, you may get a nice big tax break from the Federal Government this Spring.  The "work-space-in-the-home" deduction means you can claim a significant tax deduction if you work from home more than 50 percent of the time, or if you have a separate home office and use it to meet clients.  In a normal year, almost 180 000 Canadians take advantage of the deduction, claiming an average of $1,561.  And if you qualify it means you can claim part of your household expenses like hydro, heat, property taxes, cleaning, and rent.  Normally you need your employer to fill out form T2200 which tells the CRA that working from home is a condition of your employment. But that was before the pandemic, and now tax experts are saying so many people worked when COVID began to spread in Canada, rules could be relaxed.  Public health authorities told Canadians to stay home, and that is likely to change the rules and approval. Governments issued orders closing non-essential businesses and employers across the country and told people who could do their jobs remotely to work from home, and by mid-April, 3.3 million Canadians did.  Millions of Canadians are still working from home.  companies like Shopify told employees they can work from home as long as they want.  So much has changed because of COVID, and some of that change might be how we work from home more today and in the future.  But it could also mean some nice tax deductions in return, come tax time.  But always remember, if all else fails and you have questions, ask a Chartered Professional Accountant. 

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