Covid WFH Tax Reduction

Following the crisis that began to hit Canada in March 2020, large numbers of people found themselves working from home. To take into account this new way of working, the government decided to create a tax deduction for the people concerned. For this, 2 calculation options are offered to people working at home. The easiest option 1 with a fixed calculation, and option 2 requiring documentary justification.

Don't forget to check my other blog post : How to do your Tax in Canada?


Option 1: The pro rata of days spent working at home.


This is the easiest way to deduct your taxes. You will only need to fill out one paper and count the days you worked from home. There is no need to provide supporting documents for this procedure.


Who can benefit from it? You can benefit if you have worked from home more than 50% of the time for at least a period of 4 consecutive weeks in 2020 (with at least 50% of the work from home). The periods are cumulative. Every person has the right to it. If there are 2 of you in a household, then the 2 people can apply independently for this tax rebate.


How much ? You get $ 2 per day that you worked from home. Are not taken into account: your days off, sick,


The document to be completed: The T777s document complete option 1 by indicating the number of days: Click here for the document.


Example : Sophie worked from home during the covid.

Period 1: In March she worked 9 consecutive weeks from home. However, she had to go to work every Friday 1 time.

Period 2: Then in the period from October to December, she worked only 5 days per month from home, and the rest of the time at her office.

In this case we will only count the period 1 of March. And we will count every day worked at home, since it is more than 50% of the work done at home. 9 * 4 = 36 days worked at home. Sophie can therefore request a rebate of 36 * $ 2 = $ 72 in taxes. The second period from October to December will not be counted because Sophie did not work more than 50% of her time remotely.


Option 2 the detail method


* cracks his fingers * So there, get ready because we will get into the complicated. I recommend this method if like me you have worked most of the year from home, because you will easily exceed the limit of 400 dollars that we explained above. On the other hand, note that this method is only valid for one person per household. This is due to the fact that the rent, the electricity bill and the internet are taken into account ....


Employer's validity: You must first have this form signed by your employer. The T2200s CLICK HERE. It will ensure that you have worked well for a period of time at home. Make sure that the latter fills in all the correct boxes and that it clearly indicates that this is not included in your T4 (internet costs, rent compensation, etc.).


The list of eligible and non-eligible expenses is on optional document 2 (of T777s).


First in the calculation area, you will be asked to give the expenses you have made for your job: supplies, telephone subscriptions, rent. Then you will have to calculate in what part of your apartment you worked and what percentage of the surface.


Well, I'll spare you all the details because there is a little tool that allows you to do the calculation automatically BY CLICKING HERE.


You will then have at the end of the calculation how to fill in your boxes on the T777s as well as on your tax return.


Isn't life beautiful? In addition by clicking on "Review the amounts you provided", the site gives you the boxes to fill in as well as the amounts.



So now zou! Run quickly fill out all these papers ;) Follow me on Instagram to know my daily life by clicking here. Subscribe to my newsletter to be informed of all the latest news by filling out the small form at the bottom of the page.







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