New Temporary Canada Work From Home Tax Benefit
Financial Management

New Temporary Canada Work From Home Tax Benefit

With more people having to work at home these days it was nice to read that apparently even regular employees can get some tax relief this year in Canada in the form of writing off some expenses just as if you were a business owner in many ways. From the press release, you can get up to $400 in expense write-off provided you meet the following requirements as stated:

Employees who worked from home more than 50% of the time over a period of a least four consecutive weeks in 2020 due to COVID-19 will now be eligible to claim the home office expenses deduction for 2020. The use of a shorter qualifying period will ensure that more employees can claim the deduction than would otherwise have been possible under longstanding practice.

A new temporary flat rate method will allow eligible employees to claim a deduction of $2 for each day they worked at home in that period, plus any other days they worked from home in 2020 due to COVID-19 up to a maximum of $400. Under this new method, employees will not have to get Form T2200 or Form T2200S completed and signed by their employer.

So that is not too bad as the more money in your pocket the better. It might even inspire people to actually think about creating a home based business and realize other potential benefits to having operations at home.

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