Changes in Work-from-Home Tax Claims You Need to Know
As we move forward in the 2023 tax season, we at Bowie Financial are keen to bring to your attention the latest changes from the Canadian Revenue Agency (CRA) regarding work-from-home tax claims. These updates are critical to ensuring you can file your taxes accurately and take advantage of any applicable deductions.
Goodbye to the “Flat Rate” Method
The CRA’s temporary “flat rate” method, a relief measure from the COVID-19 era, is no longer in play for 2023. This method previously allowed Canadians to claim up to $400 for 2020 and $500 for the subsequent years in employment expenses, without the need for detailed expense tracking or the submission of a T2200 form.
The “Detailed” Method Takes Center Stage
For those of you claiming work-from-home expenses in the 2023 tax year, the “detailed” method is now the standard. This requires you to keep a meticulous record of eligible expenses incurred while working from home.
Updated T2200 Form: A Must-Have for Detailed Claims
An updated T2200 form must be obtained from employers by employees who plan to claim employment expenses under the “detailed” method. This form must be completed and signed, serving as a crucial document for your tax records.
Who is Eligible?
The eligibility to claim work-from-home expenses under the detailed method includes:
Employees who have worked from a home office for over 50% of the time for at least four consecutive weeks.
Employees who have used their home workspace for regular and continual in-person meetings with clients, customers, or others for work.
What’s Claimable?
Under the detailed method, you can claim:
Utilities
Home internet access
Rent
Maintenance and minor repairs
Specific office supplies
Note that mortgage payments are not claimable, and only employees who earn commission can deduct property taxes and home insurance.
A Reminder: T2200S Form No Longer Available for 2023
The T2200S form – a declaration for conditions of employment due to working at home amid COVID-19, will not be available for 2023.
Efficient tax management is our goal for you, and keeping abreast with these updates is essential. For any queries or assistance with tax filing considering these new updates, Bowie Financial is here to help.
We are dedicated to offering current and comprehensive tax guidance. Together, let’s navigate this tax season with confidence and ease.
For more information and assistance, please connect with us at 613-416-2020
