Author Topic: 2020 Tax Year Work-From-Home Deduction  (Read 2189 times)

HMman

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2020 Tax Year Work-From-Home Deduction
« on: December 17, 2020, 02:15:49 PM »
For those who haven't seen it yet, Revenue Canada announced one-time revisions to the working from home tax deductions for the 2020 tax year. A flat rate of $2/working day can be applied for each day worked at home, to a maximum of $400. To claim, you must meet all the following requirements:

  • you worked from home in 2020 due to the COVID-19 pandemic or your employer required you to work from home
  • you worked more than 50% of the time from home for a period of at least four consecutive weeks in 2020
  • you have a completed and signed Form T2200S or Form T2200 from your employer (only applicable if the detailed method is used to complete the claim)
  • the expenses are used directly in your work during the period

Further details:
https://www.canada.ca/en/revenue-agency/news/2020/12/simplifying-the-process-for-claiming-a-deduction-for-home-office-expenses-for-employees-working-from-home-due-to-covid-19.html

halftimer

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Re: 2020 Tax Year Work-From-Home Deduction
« Reply #1 on: December 17, 2020, 05:06:03 PM »
I noticed this and already counted my work at home days - 91
That was while working part time, and at first taking a weekly, then monthly shift in the office when it was my turn to check the mail. Not many work from home days in the fall though, as I had to coordinate the packing, moving, and unpacking of the entire office as we downsized.

How many at home days are most others here claiming?

sieben

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Re: 2020 Tax Year Work-From-Home Deduction
« Reply #2 on: December 17, 2020, 07:41:27 PM »
I'm been WFH since March now, but I'm going to be tempted to do the detailed claim. Sounds like my employer will issue me T2200, and I actually setup a separate internet connection for work so I think it makes more sense. Given that my home is a tiny cabin in the forest, it might be a bit tricky to claim electricity or anything else but even just the internet should take me over the $400.

FLBiker

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Re: 2020 Tax Year Work-From-Home Deduction
« Reply #3 on: December 18, 2020, 05:47:01 AM »
Yeah, I was just looking at this.  I'm a recent immigrant from the US (we moved in July) and I wasn't thinking I could do any WFH stuff because I'm still working for a US company (and they won't do a T2200) but it sounds like I might qualify for this one.  We're working with a crossborder tax specialist this year (since it seems a bit complicated during the transition year) so we'll see what he says.

HMman

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Re: 2020 Tax Year Work-From-Home Deduction
« Reply #4 on: December 18, 2020, 10:11:56 AM »
It'll be a pretty handy deduction, for sure. I've been working at home exclusively since mid-March, and had planned to talk to an accountant about work-from-home deductions prior to this being announced. A quick count puts me at ~190 work days at home, so I'll be pretty close to the 200 day limit, and might just round that up come tax-time.

@sieben the detailed method definitely sounds like the way to go for your case! I'm envious of how your setup sounds - a tiny cabin in the forest is the perfect isolation spot. Unless you have a bunch of kids, I guess...

Prairie Gal

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Re: 2020 Tax Year Work-From-Home Deduction
« Reply #5 on: December 18, 2020, 05:47:04 PM »
It'll be a pretty handy deduction, for sure. I've been working at home exclusively since mid-March, and had planned to talk to an accountant about work-from-home deductions prior to this being announced. A quick count puts me at ~190 work days at home, so I'll be pretty close to the 200 day limit, and might just round that up come tax-time.

@sieben the detailed method definitely sounds like the way to go for your case! I'm envious of how your setup sounds - a tiny cabin in the forest is the perfect isolation spot. Unless you have a bunch of kids, I guess...

I have also been WFH since mid-March, except for two days. Bosses wanted us to start retuning to the office and "getting back to normal", but this was in the Fall, right when things were starting to escalate.   I went in two days (once/week for two weeks) and then told them I am just not comfortable, so they said they wouldn't force me to.

I did take a few vacation days, though. I guess I will have to figure out how many days I actually worked from home. I definitely noticed that I went through more T.P. lol. (Just kidding, I know it's not deductible, although it should be, considering what a precious commodity it was in 2020. :) )
« Last Edit: December 18, 2020, 05:54:16 PM by Prairie Gal »

UpNAtom

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Re: 2020 Tax Year Work-From-Home Deduction
« Reply #6 on: December 27, 2020, 06:27:26 AM »
Has anyone done the math for whether detailed makes sense?  I am guessing it might be borderline for our situation depending what portion of expenses can be claimed.  Have been gone since March.

Office in home is 15-20 percent of the living space.
185/month heat, water, electricity
60/month internet (had it before working from home but necessity for work)
25/month cell (had it before but necessity for work)

Gives approximately 385 at 9.5 months, 15 percent of the living space.  Makes the 400 simple seem less of a headache unless I'm missing something (and assumes 100 percent of cell and internet which I doubt would be accepted).

BSL18

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Re: 2020 Tax Year Work-From-Home Deduction
« Reply #7 on: December 27, 2020, 09:40:36 AM »
Has anyone done the math for whether detailed makes sense?  I am guessing it might be borderline for our situation depending what portion of expenses can be claimed.  Have been gone since March.

Office in home is 15-20 percent of the living space.
185/month heat, water, electricity
60/month internet (had it before working from home but necessity for work)
25/month cell (had it before but necessity for work)

Gives approximately 385 at 9.5 months, 15 percent of the living space.  Makes the 400 simple seem less of a headache unless I'm missing something (and assumes 100 percent of cell and internet which I doubt would be accepted).

DO has been working from home since before the Covid, and we've been doing the detailed one for 5 years now. Unless you rent, I don't think many people will actually be ahead with the detailed one. Might depend on your line of work, but for most office jobs, you'd have to burn through a whole lot of ream of paper before writing off 400$.

Mighty Eyebrows

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Re: 2020 Tax Year Work-From-Home Deduction
« Reply #8 on: December 30, 2020, 01:58:04 PM »
you worked from home in 2020 due to the COVID-19 pandemic or your employer required you to work from home

Unfortunately, this excludes those of us who were already working from home before the pandemic.

HMman

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Re: 2020 Tax Year Work-From-Home Deduction
« Reply #9 on: January 05, 2021, 03:11:39 PM »
you worked from home in 2020 due to the COVID-19 pandemic or your employer required you to work from home

Unfortunately, this excludes those of us who were already working from home before the pandemic.

Presumably you'd be covered by the detailed deduction, though, as that's what you'd have done anyways, eh?