When the pandemic first triggered a shift to working from home, not many of us were thinking about the tax implications of that change. Now that working from home is the norm for many, and given that we’re approaching tax season, a question to ask is whether you can claim those working from home expenses you’ve incurred.

The short answer? Yes. 

Under newly announced fedearal guidelines, people who worked from home for more than 50% of the time over at least four consecutive weeks due to COVID-19 may be eligible for some tax-breaks.

The guidelines allow you to claim $2 for each day you worked at home, up to a maximum of $400. For those who were already working from home pre-pandemic, the same process as previous years still applies.

What Can I Claim?

The CRA has released a list of eligible expenses you can claim. The list includes items you might expect like electricity, heating, water, the utility portion (electricity, heat, and water) of condo fees, internet access fees, maintenance and minor repair costs.  Items such as mortgage payments, furniture and décor are not eligible. Also, you are not eligible for the tax deduction if your employer is already covering your work from home expenses. 

If you are curious about what your expenses add up to, CRA  has created a calculator to help.

Filing your Tax Return for 2020

As with any year, it’s always better to file early than to put it off, getting a head start will guarantee that you get the help you want. This year especially, your tax return may seem complicated due to the many COVID response benefits and programs implemented by CRA.

Now is a great time to start collecting your information like T4s, receipts, last tax year’s notice of assessment, and a copy of last year’s return. That way you’re ready once you can file.

If you’re looking for help with your tax return this year, our tax representatives from Harding & Associates Accounting Inc. offer CUA members professionally completed tax return services with expert advice and competitively priced.

To find more about this service, contact Colin Harding at info@hardingassociatesinc.com or 902-266-6556. 

Revised Jul. 23, 2021