Teleworking is a part of our daily life today now more than ever. Because of COVID-19, many of us adapted to the current situation by working from home. A temporary simplified flat-rate method was put in place by the federal and provincial governments. Previously, to claim expenses related to working from home, employers had to provide forms T2200 and TP64.3 (Declaration of Working Conditions). Now, employees can take advantage of the simplified method by claiming a deduction of $2 per day of telework to a maximum of $400. In other words, employees will not have to obtain forms from their employers to claim a tax credit associated with telework.
Feel free to click on the links below to calculate the most advantageous method for you.
Revenu Canada: Home office expenses for employees – Canada.ca
Meal expenses
Please note that the deduction for meal expenses for a transportation employee has increased from $17 to $23. This increase is retroactive to January 1, 2020 and is valid for both the provincial and federal governments.
Caregivers
In Quebec, the caregiver tax credit is replaced by the Tax Credit for Caregivers. Remember that this tax credit has two components. The first applies for any caregiver who takes care of a person 18 years of age or older who has a severe and prolonged physical impairment and who requires assistance to perform a basic daily living activity. The second applies for any caregiver who supports and lives with a person aged 70 or older.
Reminder
Last week, the tax authorities began mailing the T4A and Relevé 1 slips to all those who received the Canadian Emergency Response Benefit (CERB). Don’t forget to include it in your 2020 tax returns.